Invesco New Economy Index
Providing access to innovative companies and digital currency
Equity component
Equity exposure via Invesco QQQ Exchange Traded Fund (ETF) designed to track the Nasdaq-100 Index®.
Bitcoin exposure
The Invesco Galaxy Bitcoin ETF provides exposure to the world’s largest cryptocurrency.
Adaptive asset allocation
Exposure to equities, Bitcoin, and cash adjusted daily seeking to maintain a target annual volatility of 12.5%.
Transcript
On‑Screen Question 1: Can you provide an overview of the Invesco New Economy Index?
The Invesco New Economy Index is an equity-focused, 12.5% target volatility index that seeks strong risk-adjusted returns by allocating to a combination of the innovation-based Invesco QQQ ETF (QQQ) and the Invesco Galaxy Bitcoin ETF (BTCO), which aims to track the performance of spot bitcoin prices. The index utilizes an excess return design and starts with allocations of 80% to QQQ and 20% to BTCO before adjusting those exposures to maintain the target volatility.
On‑Screen Question 2: Why include bitcoin in a volatility‑controlled index?
Bitcoin is known for big swings — both up and down — and that’s part of what makes it so interesting. Over the long term, even considering some of the recent declines, bitcoin has exhibited very positive performance.
By putting bitcoin inside a volatility‑controlled index, we aim to give investors access to that growth potential — but in a measured, more stable way.
On‑Screen Question 3: What are the challenges of including high‑risk, high‑reward assets in a risk‑managed framework?
With any volatility‑controlled framework, the math naturally limits how much exposure you can take to the most volatile components. So there’s always a balance: risk versus reward.
In our view, even a small allocation to bitcoin can a have meaningful long‑term impact. So the challenge is real — but the potential benefit is real too, and worth incorporating thoughtfully.
On‑Screen Question 4: What does the index of tomorrow look like?
We expect more innovation — not less. Bitcoin may be the best‑known digital asset today, but other cryptocurrencies are gaining traction. And beyond crypto, the explosion of artificial intelligence (AI) and next‑generation technology is reshaping entire sectors. We think those themes — digital assets, AI, and transformative technology — will feature prominently in many of the indices built in the coming years.
On‑Screen Question 5: Why did Invesco combine QQQ and BTCO in the Invesco New Economy Index?
Our goal was to blend two cutting‑edge exposures in a way that’s accessible to annuity buyers. QQQ is a long‑established strategy with exposure to innovative, growth‑focused companies — and many investors already know it well. BTCO, on the other hand, is newer and bitcoin is not as widely understood yet. By combining them in an annuity-related index, investors get exposure to high‑growth themes, but with the downside protection that fixed index annuities (FIAs) provide. We believe that is a compelling pairing.
On‑Screen Question 6: How does the index’s 12.5% target volatility help support consistent outcomes for fixed index annuity policyholders?
The volatility target is designed to get clients more participation in the index’s returns; it’s also there to help keep crediting rates steadier over time. Historically, many annuity buyers have been surprised when renewal rates drop significantly as markets shift.
With a volatility‑targeted index, that renewal risk can be meaningfully reduced, and the crediting experience becomes more predictable. That’s a major advantage for long‑term planning.
On‑Screen Question 7: Why are hybrid indices — combining equity and digital assets — becoming more relevant?
It’s part of the natural progression of markets. As new asset classes mature, access expands. Bitcoin is a great example — once limited to early adopters, then made available through ETFs, and now incorporated into annuity indices. Investors want modern exposures, and index design is evolving to meet that demand.
On‑Screen Question 8: What role does daily adaptive allocation play in managing risk?
We believe daily adaptive allocation is essential for controlling volatility. Markets tend to be most volatile during periods of stress, so by adjusting allocations every day — for example, reducing exposure to assets experiencing high volatility — the index can limit drawdowns while still participating in upside opportunities. It’s real‑time risk management.
On‑Screen Question 9: What advantages does partnering with Invesco bring to carriers and financial professionals?
Both QQQ and BTCO reflect Invesco’s commitment to innovation and thoughtful index design. By partnering with us, carriers and financial professionals gain access not only to our indexes, but also to our team of specialists, our third‑party research, and a full suite of value‑add tools and content. We’re built to help partners stay ahead in a rapidly changing investment landscape.
About Invesco New Economy Index
The Invesco New Economy Index provides access to some of the most innovative areas of the market with exposure to the Invesco QQQ ETF and Invesco Galaxy Bitcoin ETF.
How it works
The first pillar of the Index is the Invesco QQQ ETF (QQQ), providing exposure to a diverse group of cutting-edge Nasdaq-100® companies for over 25 years.1 QQQ is committed to innovation by providing investors access to the 100 largest non-financial companies listed on the Nasdaq that are at the forefront of transformative, long-term themes such as augmented reality, cloud computing, big data, mobile payments, streaming services, and electric vehicles.
The second pillar of the index is the Invesco Galaxy Bitcoin ETF (BTCO). BTCO aims to track the spot price of Bitcoin and provides investors with a secure and simpler access point to cryptocurrency.
The Index begins with an 80% allocation to QQQ and 20% to BTCO, aiming to balance innovation-focused equities and Bitcoin. It adjusts daily to maintain a target annual volatility of 12.5%2 using cash3 as needed to help stabilize performance. While allocations are reset monthly with an 80/20 equity-to-Bitcoin ratio, actual weights can shift significantly based on market movements.
In periods of high volatility, the Index may reduce exposure to riskier assets and increase cash holdings to manage overall risk. When the riskiness of equities and/or Bitcoin holdings rises, the index will shift away from equities and Bitcoin into cash. Or as the riskiness of equities and Bitcoin holdings decreases, the index will shift away from cash and into equities and Bitcoin.
Resources
Fact sheet
An overview of the index with the latest performance information
Transcript
Methodology
Rules and guidelines followed to build and maintain the index
Transcript
Brochure
Illustrates key facts and features of the index
Transcript
There is no assurance that the index discussed in this material will achieve its investment objectives.
There is no guarantee the stated volatility target will be achieved.
Diversification/Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns and does not assure a profit or protect against loss.
Holding cash or cash equivalents may negatively affect performance.
Investments focused in a particular sector, such as technology, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
In general, equity values fluctuate, sometimes widely, in response to activities specific to the company as well as general market, economic and political conditions.
Bitcoin is a digital currency (also called cryptocurrency) that is not backed by any country's central bank or government. Bitcoins can be traded for goods or services with vendors who accept bitcoins as payment.
BTCO is not an investment company within the meaning of the Investment Company Act of 1940 and is not subject to regulation thereunder.
Bitcoins and other cryptocurrencies are considered a highly speculative investment due to their lack of guaranteed value and limited track record. Because of their digital nature, they pose risks from hackers, malware, fraud, and operational glitches. Bitcoins and other cryptocurrencies aren't legal tender and are operated by a decentralized authority, unlike government-issued currencies. Cryptocurrency exchanges and cryptocurrency accounts aren't backed or insured by any type of federal or government program or bank.
The price of a digital currency could drop precipitously (including to zero) for a variety of reasons, including, but not limited to, regulatory changes, a crisis of confidence, flaw or operational issue in a digital currency network or a change in user preference to competing cryptocurrencies.
Currently, there is relatively limited use of cryptocurrency in the retail and commercial marketplace, which contributes to price volatility.
The Nasdaq-100 Index® includes 100 of the largest domestic and international non-financial securities listed on the NASDAQ Stock Market based on market capitalization.
Important Information about Nasdaq®
Nasdaq® and QQQ®, are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by Invesco Indexing LLC. 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).
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