Invesco QQQ Innovation Suite Celebrates Three-Year Anniversary of Providing Investors New Ways to Access Nasdaq-listed Companies
The suite offers investors personalized access to companies of all sizes that are focused on innovation
ATLANTA, Oct. 26, 2023 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ), a leading global asset management firm, announced that the popular Invesco QQQ Innovation Suite has reached its three-year milestone. The line-up of products is intended to provide every type of investor a simple way to invest in ingenuity and innovation.
"The innovation suite is unique because it allows investors to customize their market cap exposure to companies that are pioneering the future," said Anna Paglia, Global Head of ETFs and Indexed Strategies. "We're excited by the tremendous investor interest we've seen since launching in 2020, demonstrating that advancement and innovation at the product development level continues to drive benefits to the end investor."
Since its launch as part of the Invesco QQQ Innovation Suite on October 13, 2020, Invesco NASDAQ 100 ETF (QQQM) has grown to more than $14 billion in assets under management (AUM)1. The ETF offers investors access to the global growth companies included in the Nasdaq-100 Index®, the 100 largest domestic and international non-financial companies listed on the Nasdaq Stock Market based on market capitalization, at 5 basis points less than the Invesco QQQ ETF (QQQ)2, which is attractive to longer-term "buy-and-hold" investors who may be focused on cost savings.3
"While short-term investors value QQQ for its liquidity4, the strong inflows we've seen into QQQM over the last three years shows that this strategy may appeal more to long-term investors seeking exposure to the innovative companies included in the index," explained Paglia.
QQQM, along with other products in the suite, including Invesco NASDAQ Next Gen 100 ETF (QQQJ) and Invesco NASDAQ Future Gen 200 ETF (QQQS), can be used to personalize investor access to companies of all sizes that are focused on future innovation. The suite provides full access to non-financial companies across the Nasdaq Composite Index.
QQQJ tracks the Nasdaq Next Generation 100™ Index and offers uninterrupted access to the "next 100" non-financial companies listed on Nasdaq. The ETF provides an attractive building block of midcap growth names that share the same innovative characteristics as companies included in the Nasdaq-100 Index, but at an earlier stage in the growth cycle. The companies included in QQQJ are seasoned companies that have often demonstrated an ability to grow their fundamentals and have the potential to migrate into the Nasdaq-100 Index if eligibility and criteria are met.
QQQS tracks the Nasdaq Innovators Completion Cap™ Index and offers access to non-financial smaller-cap companies screened by a key marker of innovation – high quality patents, which may be an indicator of future innovation potential. Its underlying index provides exposure to 200 Nasdaq-listed companies based on the size of their patent portfolios relative to their market capitalization. The mix of small-cap and micro-cap companies are not included in the Nasdaq-100 Index or the Nasdaq Next Generation 100 Index, so there is no overlap between strategies.
"We're excited to celebrate this three-year milestone with our long-standing partner, Invesco," said Emily Spurling, Senior Vice President, Global Head of Index, Nasdaq. "At its core, the Nasdaq-100 Index captures companies with a legacy of leveraging innovation to create competitive advantages that disrupt their respective markets. Through our partnership on the Innovation Suite, we've been able to realize our goal of expanding the Nasdaq-100 ecosystem to unlock access and bring innovation to the investing public. We look forward to continued growth and expansion with Invesco in the future."
Also marking three years since inception as of October 13, 2023, is the Invesco NASDAQ 100 Index Fund (IVNQX), the first mutual fund addition to the Invesco QQQ Innovation Suite. The fund provides access to innovation through a cost-efficient mutual fund with a 0.29% management fee, a 54% reduction when compared to the average net expense ratio of other retirement class large-cap growth funds.5
About Invesco Ltd.
Invesco Ltd. is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive, and alternative investment capabilities. With offices in more than 20 countries, Invesco managed $1.49 trillion in assets on behalf of clients worldwide as of Sept. 30, 2023. For more information, visit www.invesco.com.
About Nasdaq
Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on Twitter @Nasdaq, or at www.nasdaq.com..
- Bloomberg L.P. as of Oct. 20, 2023
- The total expense ratio for QQQ is 0.20% and 0.15% for QQQM.
- Since ordinary brokerage commissions apply for each buy and sell transaction, frequent trading activity may increase the cost of ETFs.
- ETF Shares are not individually redeemable and owners of the Shares may acquire those Shares from the Fund and tender those Shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 10,000, 20,000, 25,000, 50,000, 80,000, 100,000 or 150,000 Shares.
- Morningstar Direct as of June 30, 2023. Morningstar Peer Group is Large-Cap Growth Retirement Class R6 Funds. Inception date of 10/13/2020. IVNQX has a total expense ration of 1.71%. Net expense ratio = total annual operating expenses less any contractual management fee waivers in effect through at least Dec. 31, 2023. Class R6 shares are primarily intended for retirement plans and shareholders of omnibus intermediaries that meet certain standards for institutional investors. See the prospectus for more information.
Important Information:
Invesco Distributors, Inc. is not affiliated with Nasdaq.
Basis points, as known as bps, are a unit of measure. One basis point is equivalent to 0.01% or 0.0001 in decimal form.
The Nasdaq-100 Index® is designed to measure the performance of the 100 largest domestic and international non-financial securities listed on The Nasdaq Stock Market based on market capitalization. The Nasdaq Next Generation 100 Index™ is designed to measure the performance of the next generation of Nasdaq-listed non-financial companies; that is, the largest 100 securities outside of the Nasdaq-100 Index®. An investment cannot be made directly into an index.
About Risk:
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Underlying Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.
Investments focused in a particular sector, such as information technology, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
QQQM, QQQJ and QQQS
The Fund is non-diversified and may experience greater volatility than a more diversified investment.
The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.
QQQJ
Stocks of medium-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale.
QQQS
Stocks of small and mid-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale.
The Fund's Underlying Index (Index) is composed of companies with valuable portfolios of patents. The Index Provider relies on an independent data provider to ascertain the potential value of an issuer's patents and related intangible assets (i.e., intellectual property and research & development activities) for inclusion in the Index. The Fund's performance may suffer if the data provider's does not correctly value an issuer's patents or if the companies included in the Index ultimately do not benefit from holding such patents. There is no guarantee that the Index will be composed of companies with the most valuable patents.
Invesco Nasdaq-100 Index Fund
Derivatives may be more volatile and less liquid than traditional investments and are subject to market, interest rate, credit, leverage, counterparty and management risks. An investment in a derivative could lose more than the cash amount invested.
In general, stock values fluctuate, sometimes widely, in response to activities specific to the company as well as general market, economic and political conditions.
The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.
Unlike many investment companies, an underlying fund does not utilize an investing strategy that seeks returns in excess of the underlying index of certain underlying exchange-traded funds. Therefore, it would not necessarily sell a security unless that security is removed from the underlying index.
Many products and services offered in technology-related industries are subject to rapid obsolescence, which may lower the value of the issuers.
The Fund may become "non-diversified," as defined under the Investment Company Act of 1940, as amended, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the Index. Shareholder approval will not be sought when the Fund crosses from diversified to non-diversified status under such circumstances.
The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the Fund.
Investors should be aware of the material differences between mutual funds and ETFs. ETFs generally have lower expenses than actively managed mutual funds due to their different management styles. Most ETFs are passively managed and are structured to track an index, whereas many mutual funds are actively managed and thus have higher management fees. Unlike ETFs, actively managed mutual funds have the ability react to market changes and the potential to outperform a stated benchmark. Since ordinary brokerage commissions apply for each ETF buy and sell transaction, frequent trading activity may increase the cost of ETFs. ETFs can be traded throughout the day, whereas, mutual funds are traded only once a day. While extreme market conditions could result in illiquidity for ETFs. Typically they are still more liquid than most traditional mutual funds because they trade on exchanges. Investors should talk with their financial professional regarding their situation before investing.
Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the Fund call 800 983 0903 or visit invesco.com for the prospectus/summary prospectus.
Invesco Distributors, Inc. is the US distributor for Invesco's retail products, and is an indirect, wholly owned subsidiary of Invesco Ltd.
The sponsor of the Invesco QQQ TrustSM, Series 1 (QQQ), a unit investment trust, is Invesco Capital Management LLC (Invesco). NASDAQ, Nasdaq-100 Index, Nasdaq-100 Index Tracking Stock and QQQ are trade/service marks of Nasdaq, Inc. and have been licensed for use by Invesco. Nasdaq makes no representation regarding the advisability of investing in QQQ and makes no warranty and bears no liability with respect to QQQ, the Nasdaq-100 Index, its use or any data included therein.
Nasdaq®, Nasdaq-100 Index®, Nasdaq-100®, NDX®, Nasdaq Next Gen 100™ , Nasdaq Composite Index®, QQQ®, are trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the "Corporations") and are licensed for use by Invesco Distributors Inc.. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the product(s).
Contact: Rachael Peng, rachael.peng@invesco.com 713.214.4193
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