Invesco, Nasdaq Expand QQQ Fund Line

The offerings include a "next-gen" ETF and a Nasdaq 100 mutual fund.

The Invesco QQQ ETF has long been a popular exchange-traded fund. Now, Invesco has teamed with Nasdaq to expand its QQQ product line, Invesco said Tuesday, noting the new Invesco QQQ Innovation Suite provides investors with a wider variety of ways to meet their goals.

The QQQ ETF started tracking the Nasdaq-100 Index in 1999 and it is now the fifth largest ETF listed in the U.S., with $130 billion in assets under management and is the second most-traded ETF in the U.S. based on average daily volume, Invesco said, citing recent Bloomberg data.

The tech-heavy ETF has returned 39% year to date.

The four new offerings making up the Invesco QQQ Innovation Suite are:

  1. The Invesco Nasdaq 100 ETF (QQQM, with a net expense ratio of 0.15%) that costs 5 basis points less than QQQ. Its holdings feature a mix of tech stocks (including Adobe, Apple, Facebook and Microsoft) and other stocks in the Nasdaq 100 (including Dollar Tree and Starbucks). Short-term investors who prioritize liquidity may still find the attributes of QQQ most appropriate to their needs; however longer-term “buy-and-hold” investors may be most focused on cost savings and prefer this new ETF, Invesco said.
  2. The Invesco Nasdaq Next Gen 100 ETF (QQQJ, also 0.15%), which is focused on tech and media companies listed on the Nasdaq, including Akamai Technologies, Discovery, DISH Network, News Corp and Roku. Longer- and shorter-term investors looking for exposure to innovative mid-cap companies listed on the Nasdaq may instead opt for this tech- and media-focused Invesco NASDAQ Next Gen 100 ETF, Invesco said.
  3. The Invesco NASDAQ 100 Index Fund (IVNQX) mutual fund providing core Nasdaq-100 exposure. It is targeted at advisors who prefer a mutual fund, such as providers of defined contribution investment-only retirement plans, the company said.
  4. The Invesco Nasdaq-100 Growth Leaders Portfolio (QQQG), a unit investment trust targeted at investors looking for a defined scheduled maturity date and more targeted fundamental exposure.

“Innovation is a growth driver and has never been so important as during a pandemic,” according to John Hoffman, head of Americas, ETFs & Indexed Strategies at Invesco. “By launching the QQQM and the QQQJ, Invesco is providing more ways for investors to access companies using technology to disrupt their sector,” he told ThinkAdvisor. “While this does include companies in the technology sector, the commonality across these companies is their legacy of using innovation and technology to create competitive advantages across multiple sectors and industries.”

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