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%.
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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