IIQQQG Invesco QQQ Growth Index

Providing access to today's most innovative companies
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About Invesco QQQ Growth Index

Innovation-oriented equity exposure via Invesco QQQ. Bond exposure that responds to changes in market conditions. Daily, adaptive allocations seek to mitigate wild swings in the market. All delivered in a single, comprehensive package.

Invesco QQQ

Equity exposure focused on innovation via Invesco QQQ, an exchange traded fund (ETF) designed to track the Nasdaq-100 Index®.

Responsive bond strategy

A dynamic bond strategy is utilized to diversify equity exposure while responding to varying interest rate conditions.

Adaptive asset allocation

Exposure to equities, bonds, and cash adjusted daily with Salt Financial’s truVol® technology, seeking to maintain a target annual volatility of 12.5%.

How it works

The centerpiece of the Invesco QQQ Growth Index is the Invesco QQQ exchange traded fund (ETF). The fund is designed to track the Nasdaq-100 Index®. Invesco QQQ is committed to innovation, providing investors acess to this fast-growing sector.

Responsive bond exposure

The Invesco QQQ Growth Index provides exposure to bonds as an additional and complementary source of returns. Another attractive feature of bonds – and, in particular, US Treasury bonds – is that they often experience less dramatic swings in returns relative to stocks.1

However, a drop in price coupled with higher volatility in 10-year Treasuries often signals a rise in interest rates. When this happens, the index allocates a portion of the bond exposure away from 10-year Treasuries and into 2-year Treasuries, potentially offering more price stability under these conditions. The goal is to provide more defensive exposure and help cushion the impact of declining bond prices.

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Adaptive asset allocation

The index’s exposure to equities, bond, and cash is adjusted daily using Salt Financial’s truVol® technology, with the aim to deliver a smoother performance profile over time. For instance, when the riskiness of stock holdings rises, the index will shift away from stocks and into bonds, into cash or into a combination of bonds and cash. On the other hand, as the riskiness of stock holdings decreases, the index will shift away from bonds or cash and into stocks.

Additionally, as the riskiness of the combined allocation of stocks and bonds rises and falls, the index allocates more and less, respectively, to cash.

In periods of high volatility, it may be possible for the index to be comprised heavily or fully of bonds and / or cash, which may persist as volatility is elevated.  Due to excess return index construction, cash allocations in the index are non-remunerated.2

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Resources

  • 1

    For the 10-year period from December 31, 2015, to December 31, 2025, the annualized volatility of the S&P 500 Index and Bloomberg U.S. Trsy Bellwether 10-Year TR Index were 18.13% and 7.27%, respectively. Volatility is the standard deviation of returns. Standard deviation is a statistic that measures the dispersion of a dataset relative to its mean.
  • 2

    The cash position is non-remunerated means that the amount of readily available cash does not directly generate income or provide any financial return; it simply represents the current level of liquid funds on hand, not a source of earnings itself.