Victory Capital launched a new ETF on the Nasdaq Stock Market® today that offers exposure to the 50 stocks that are next in line for inclusion in the widely popular Nasdaq-100 Index.
The VictoryShares Nasdaq Next 50 ETF (QQQN) seeks to provide investment results that track the performance of the Nasdaq Q-50 Index® (NXTQ) before fees and expenses.
The Index includes the 50 largest, non-financial names ranked by market cap, that are not currently included in the Nasdaq-100 Index. The Nasdaq Q50 Index has been live and proven for more than 10 years. Its methodology aligns with the innovation and growth focus behind the time-tested Nasdaq-100 Index, but with an emphasis on forward-thinking companies on the vanguard of market leadership and technological advancement.
Mannik Dhillon, CFA, CAIA, President, VictoryShares and Solutions, told ETF Trends that the idea to launch this came through the ongoing and strong partnership they have with Nasdaq.
“We and their senior leadership team are always discussing potential new offerings we can bring to investors together and this one bubbled to the top of the list for its simplicity, efficacy and relevance in today’s market,” Dhillon told ETF Trends. “In addition to that, the underlying index, the Nasdaq Q-50 Index is not new, having been live for over 10 years, so that factored into our decision as well.”
Dhillon added that now more than ever there is an increased focus on companies that can truly disrupt industries and innovate as our world evolves.
“With our thematic suite of offerings we want to continue on the industry trend to democratize access to baskets of companies that resonate with investors,” he said. “With QQQN specifically we are hoping to provide access to an index of disruptive and innovative companies, helping to capture their potential early, well before they may grow to be tomorrow’s mega cap leaders.”
QQQN’s methodology starts with a universe of all companies, both domestic and foreign, that are listed on the Nasdaq Stock Exchange. It then removes all companies classified as financials then selects the largest 50 companies, based on market capitalization, that are not currently in the Nasdaq-100.
Chart courtesy of Victory Capital
Cameron Lilja, Vice President, and Head of Global Index Products at Nasdaq, said they are committed to creating powerful index strategies and methodologies that help investors access financial markets.
“This includes leveraging Nasdaq’s history of having the most innovative global companies listed on our exchange,” Lilja said. “Our work with Victory Capital is essential in bringing groundbreaking ETF strategies to market through the VictoryShares platform.”
Victory Capital entered the ETF business in 2015 and has grown its VictoryShares platform to 21 ETFs and approximately $4.7 billion in assets under management in just over five years as of August 31, 2020. In addition to its risk-weighted strategies, VictoryShares leverages the active insights of Victory Capital’s Investment Franchises to offer innovative dividend growth and multifactor strategies, as well as thematic and active fixed income ETFs. For more information, visit www.victoryshares.com.