
Innovation
The Nasdaq-100: Where technology isn’t just in the tech sector
Technology can thrive in unexpected places. Learn how three food and beverage industry leaders are innovating.
In the 27 years since their introduction, exchange traded funds (ETFs) have gradually become one of the “go to” investment vehicles for institutional and individual investors alike. Originally created in response to the rising popularity of passive index investing strategies, ETFs were designed to offer a less costly, more liquid and simpler alternative to mutual funds for investors seeking to closely track a particular index’s performance.
Today, the U.S. ETF industry has grown to encompass more than $4 trillion in assets under management with funds that address almost every aspect of the market—from stocks and bonds, to specific sectors, foreign exchanges, and even socially responsible strategies.
Through it all, the Invesco QQQ ETF (which tracks the NASDAQ 100 index) has served as a major driver of growth and popularity for the ETF industry:
Lipper fund percentile rankings are based on total returns, excluding sales charges and including fees and expenses, and are versus mutual funds, ETFs and funds of funds in the category tracked by Lipper. The Lipper one-year rank 10% (59 of 653), five-year rank 2% (7 of 558), 10-year rank 1% (2 of 440), 15-year rank 1% (2 of 325) as of September 30, 2020.
The surging popularity of ETFs appears to show no sign of abating. Despite a period of unprecedented economic uncertainty and market volatility, year-to-date ETF inflows through August 31, 2020 are more than $282 billion (almost double the $148 billion recorded during the same period in 2019).3 And firmly positioned at the forefront of this innovative wave is the Invesco QQQ ETF.
Bloomberg L.P., based on AUM as of November 2, 2020, the top five ETF’s: SPY $278.1B; IVV $209.9B; VTI $163.4B; VOO $157.5; QQQ $128.3B.
Bloomberg L.P., based on average daily volume traded, as of May 8, 2020.
ETF.com, “Strong ETF Inflows Continue in Aug,” September 2, 2020.
Select the option that best describes you, or view the QQQ Product Details to take a deeper dive.
The Nasdaq-100: Where technology isn’t just in the tech sector
Technology can thrive in unexpected places. Learn how three food and beverage industry leaders are innovating.
How QQQ can fit into your portfolio
Learn why ETFs can be a smart investment choice and how Invesco QQQ provides access to some of the world's most innovative companies.
Since ordinary brokerage commissions apply for each ETF buy and sell transaction, frequent trading activity may increase the cost of ETFs.
Shares are not individually redeemable and owners of the Shares may acquire those Shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations only, typically consisting of 10,000, 25,000, 50,000, 75,000, 80,000, 100,000, 150,000 or 200,000 Shares.
Investors should be aware of the material differences between mutual funds and ETFs. ETFs generally have lower expenses than actively managed mutual funds due to their different management styles. Most ETFs are passively managed and are structured to track an index, whereas many mutual funds are actively managed and thus have higher management fees. Unlike ETFs, actively managed mutual funds have the ability react to market changes and the potential to outperform a stated benchmark. Since ordinary brokerage commissions apply for each ETF buy and sell transaction, frequent trading activity may increase the cost of ETFs. ETFs can be traded throughout the day, whereas, mutual funds are traded only once a day. While extreme market conditions could result in illiquidity for ETFs. Typically they are still more liquid than most traditional mutual funds because they trade on exchanges. Investors should talk with their financial professional regarding their situation before investing.
Before investing, investors should carefully read the prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the Fund, call 800 983 0903 or visit invesco.com for the prospectus.
The Nasdaq-100 Index comprises the 100 largest non-financial companies traded on the Nasdaq. The NASDAQ Composite Index measures all NASDAQ domestic and international-based common stocks listed on The Nasdaq Stock Market.
The results assume that no cash was added to or assets withdrawn from the Index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.
Invesco does not offer tax advice. Investors should consult their own tax professionals for information regarding their own tax situations.