Invesco debuted a new suite of funds today that offers exposure to a set of investors who have not previously had direct access to the NASDAQ-100 as a means for exposure to large-cap growth companies.
The Invesco QQQ Innovation Suite offers investors access to the NASDAQ-100® Index and NASDAQ Next Generation 100 Index® through a variety of investment structures and exposures that complement QQQ:
- Invesco NASDAQ 100 ETF (QQQM)
- Invesco NASDAQ 100 Index Fund (IVNQX – R6 Shares)
- Invesco NASDAQ-100 Growth Leaders Portfolio (QQQG)
- Invesco NASDAQ Next Gen 100 ETF (QQQJ)
The Invesco QQQ ETF (QQQ), which began tracking the NASDAQ-100 Index in 1999, is the fifth largest ETF listed in the U.S. with $130 billion in assets under management and the second most traded ETF in the U.S. based on average daily volume traded.
Short-term investors who prioritize liquidity could still find the attributes of QQQ most appropriate; however longer-term “buy-and-hold” investors may be most focused on cost-savings and prefer the Invesco NASDAQ 100 ETF (QQQM), which costs 5bps less than QQQ. Both longer- and shorter-term investors looking for exposure to the innovative mid-cap companies listed on the Nasdaq may opt for the Invesco NASDAQ Next Gen 100 ETF (QQQJ).
John Hoffman, Head of Americas, ETFs & Indexed Strategies, Invesco, said when the Invesco QQQ ETF (QQQ) launched 20 years ago, the fund was a pioneer in simplifying how investors gained access to companies within the NASDAQ-100 Index.
“With the launch of the Invesco QQQ Innovation Suite, we are expanding on this and offering additional ways to access companies at the forefront of innovation,” Hoffman said. “By building this suite with Nasdaq, Invesco will enable clients to select the personalized combination of strategies that best suits their needs and time horizons.”
By providing different investment structures and slightly different exposures, the Invesco QQQ Innovation Suite acts as a “one stop shop” for the NASDAQ-100 companies, plus exposure to the next 100 up-and-coming innovators. This expansion will ultimately enable investors with the potential to tilt their investment exposure towards the attributes – including varying investment time horizons, share price or liquidity needs – they most value for their investment goals.
Invesco’s new suite also offers exposure to a set of investors who have not previously had direct access to the NASDAQ-100 as a means for exposure to large-cap growth companies. Certain advisors that prefer a Mutual Fund, such as providers of defined contribution investment-only (DCIO) retirement plans can now generate core NASDAQ-100 exposure from the Invesco NASDAQ 100 Index Fund (IVNQX) mutual fund. Those investors interested in a defined scheduled maturity date and more targeted fundamental exposure may look towards the Invesco NASDAQ-100 Growth Leaders Portfolio (QQQG), a unit investment trust.
“The resilience of QQQ is a testament to the strength of the NASDAQ-100 Index, and to the enduring partnership of Invesco and Nasdaq,” said Sean Wasserman, Vice President and Head of Index and Advisory Services for Nasdaq. “This further expands the NASDAQ-100 ecosystem in a way that brings a new level of access and innovation to the investing public.”
The NASDAQ-100 Index tracks the 100 largest non-financial companies listed on the Nasdaq Stock Exchange, capturing companies with a legacy of using innovation to disrupt their respective markets. The Invesco NASDAQ Next Gen 100 ETF (QQQJ) extends this concept further by offering access to the “next 100” non-financial companies listed on the Nasdaq, outside of the NASDAQ-100 Index, offering a mid-cap alternative to the NASDAQ-100.
For more information, visit invesco.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.