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Innovation Answered

Transcript

00:00:01:06 - 00:00:30:10

Ryan McCormack (Invesco QQQ)

Leisure is paramount. The word leisure carries with it notions of relaxation, enjoyment and the escape from the mundane. When we look deeper, we realize that leisure is an industry that drives and shapes the way that we spend our free time. Invesco QQQ is an ETF that tracks the Nasdaq-100 index, and the ETF gives access to disruptive companies, allowing all of us to become an agent of innovation. When we talk about leisure, we're specifically talking about the consumer discretionary and consumer staples sectors.

00:00:31:04 - 00:00:49:03

Karen Snow (Nasdaq)

Looking across the Nasdaq-100 spectrum of consumer discretionary and consumer staples, companies all are innovating in amazing ways, including eBay, PepsiCo and Marriott International.

00:00:49:03 - 00:01:01:21

Peggy Roe (Marriott)

I’m Peggy Roe from Marriott International. I lead a couple of areas. Our customer experience team includes customer experience designs, data analytics and strategy; our loyalty program; and our new businesses.

00:01:02:05 - 00:01:34:09

Renee Morin (eBay)

eBay is the pioneer of re-commerce. We had very uncertain economic times, people weren’tleaving their homes as much — shopping online became even more prevalent than it had in the past. Our trends through the surveys that we've conducted specifically around re-commerce is that it's become easier, more frequent, more of a core of some of our sellers’ businesses. And so they're more comfortable selling re-commerce as well as buying them. And being in sustainability, having a place to work where you see the results of sustainable actions every day,is really exciting.

00:01:37:04 - 00:01:52:11

René Lammers (PepsiCo)

So as a chief science officer, basically I'm overseeing the research and development activities. So it's innovating new products, new recipes, packaging offerings and all the way to find solutions for some of the sustainability challenges we have as a company.

00:01:53:10 - 00:01:59:11

Karen Snow (Nasdaq)

Each of these companies is emblematic of the disruption and innovation that defines the Nasdaq-100.

00:02:00:10 - 00:02:10:10

Peggy Roe (Marriott)

We've always been an industry that could predict forecast with pretty good accuracy. All of a sudden, it was something we'd never experienced before. People had pent up demand for leisure.

00:02:11:20 - 00:02:24:17

Renee Morin (eBay)

Gen Z and millennial demographics, they're very comfortable with re-commerce, with buying and selling of pre-owned goods. And they also seem to care a little bit more about the planet than maybe some of our older generations have.

00:02:26:15 - 00:02:46:02

René Lammers (PepsiCo)

R&D in PepsiCo is what we call a global function. We have R&D facilities in all geographies in the world. That’s why we are digitizing R&D as we speak. You need to be clever on how you design test with consumers, or how you do science, that sparks and enormous amount of creativity, locally connected with the consumers.

00:02:46:06 - 00:02:54:07

Karen Snow (Nasdaq)

Innovative companies are tracking their consumer preferences, but disruptive companies are really creating preferences. We didn't even know that we had.

00:02:54:18 - 00:03:22:09

Peggy Roe (Marriott)

I think innovation really starts with sometimes a simple insight. So if we see something that's happening in the market or in our hotels or with customers and we want to test and learn. And it can start as early or as simple as that. When you think about a hotel room and particularly today's traveler who might be traveling for business or might traveling for leisure, you think about what people are doing in that space — and the more you can use one space for multiple things, like that's really the idea.

00:03:24:01 - 00:03:37:02

Renee Morin (eBay)

We’re constantly innovating, to stay ahead of the competition, to stay ahead of the trends. And we have a really great audience to help us know where those trends are going, because we're talking with our sellers constantly.

00:03:38:01 - 00:04:03:15

René Lammers (PepsiCo)

Increasingly, innovation will be done through a sort of more data-driven digital lens. It's also happening in R&D. What that our chefs are doing is basically creating some of these recipes, we call them gold standards. And then what we do is, is create prototypes in our labs here, whether it’s products or packaging prototypes, testing them quickly, and then, with concept, together with our marketing colleagues, see whether we can create some new innovation ideas.

00:04:05:03 - 00:04:20:10

Renee Morin (eBay)

We're a tech company, but at the same time, we consume a lot of electricity. But we want to do that in the greenest, cleanest way possible. You can actually know that you're reducing emissions because you're buying a used good instead of buying a new one. And so eBay doing its part is really exciting.

00:04:21:15 - 00:04:41:16

René Lammers (PepsiCo)

I do believe that the only way you will become a successful company is, yes, you need to have the right processes, need to have the right brands. You need to become more digital and address some of the climate challenges we face. Those are critically important things. But if you don't have the right people, motivation, then nothing. Nothing of that is going to happen.

00:04:42:06 - 00:05:03:02

Peggy Roe (Marriott)

I've been here at Marriott for 19 years, and when I joined this company, I thought it was a hotel company. And what I discovered is that it's a playground, like a huge playground for someone who like me, who loves creating experiences for people. And I just think I can't get enough.

00:05:04:17 - 00:05:17:21

Ryan McCormack (Invesco QQQ)

When you think of innovation, I mean, it's a commitment and that doesn't happen overnight. These companies are really innovating around consumer preference, changing the way that we come together, how we pursue hobbies, go on vacation or entertain.

00:05:18:00 - 00:05:26:18

Karen Snow (Nasdaq)

Each of these companies is emblematic of the Nasdaq-100. They're challenging the status quo and elevating their customers’ experiences.

00:05:27:00 - 00:05:34:15

Invesco QQQ Disclaimer

Consider the Fund's investment objective risks, charges and expenses before investing. Visit Invesco.com for a prospectus with information. Read it carefully before investing.

On-Screen Disclaimer Language

(Section 1)

NOT A DEPOSIT | NOT FDIC INSURED | NOT GUARANTEED BY THE BANK | MAY LOSE VALUE | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

THIS CONTENT SHOULD NOT BE CONSTRUED AS AN ENDORSEMENT FOR OR A RECOMMENDATION TO INVEST IN MARRIOTT INTERNATIONAL, EBAY, OR PEPSICO.

NEITHER MARRIOTT INTERNATIONAL, EBAY, NOR PEPSICO ARE AFFILIATED WITH INVESCO.

There are risks involved with investing in ETFs, including possible loss of money. ETFs are subject to risks similar to those of stocks. Investments focused in a particular sector, such as technology, are subject to greater risk, and are more greatly impacted by market volatility, then more diversified investments.

Before investing, consider the Fund's investment objectives, risks, charges and expenses. Visit invesco.com for a prospectus containing this information. Read it carefully before investing.

Only three of 101 underlying Invesco QQQ ET fund holdings are featured. Participation is meant to help illustrate representative innovative themes, not serve as a recommendation of individual securities. As of 6/23/23, Marriott International made up 0.35%, eBay made up 0.16% and Pepsico made up 1.74% of Invesco QQQ.

As of 6/23/23, Invesco QQQ top ten holdings are: Microsoft Corporation 12.95%, Apple, Inc. 12.33%, Google 7.64%, NVIDIA Corp. 7.06% Amazon.com, Inc. 6.93%, Meta Platforms, Inc. 4.33%, Tesla, Inc. 4.25%, Broadcom, Inc. 2.32%, Pepsico, Inc. 1.74%, Costco Wholesale Corp. 1.58%. Holdings are subject to change and should not be considered buy/sell recommendations. See Invesco.com for current holdings. See Invesco.com for current holdings.

The Nasdaq-100 Index comprises the 100 largest non-financial companies traded on the Nasdaq. An investment cannot be made directly into an index.

R&D mentions reference research and development activities that companies undertake to innovate new products and services.

Nasdaq and Invesco are not affiliated.

Invesco Distributors, Inc. NA2918763

(Section 2)

Nasdaq®, Nasdaq-100 Index®, Nasdaq-100®, 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.

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).

The information contained in the video is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. rations do not make any recommendation to buy or sell any security or any representation about the financial condition of any company.

Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance.

Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing.

ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.

Transcript

01:00:01:04 - 01:00:22:05

Ryan McCormack (Invesco QQQ)

It's a little surprising at times when you take a step back and look at all the devices in your home that are connected to the Internet. The ability of what we can do with these devices is now unfathomable compared to ten or 20 years ago. And ultimately, it all sort of comes back to the driving force behind a lot of these components, and that would be semiconductors.

01:00:26:19 - 01:00:46:05

Ryan McCormack (Invesco QQQ)

What is QQQ? An excellent question. We like to joke here that it belongs on the Mount Rushmore of ETFs, because there's not many that can say that they have a 20-year live track record. What I find exciting is Invesco QQQ is empowering investors to become agents of innovation, across industries, across companies that are shaping the way that they live their daily lives.

01:00:46:11 - 01:00:52:00

Ryan McCormack (Invesco QQQ)

QQQ is very different in that it's based on a rock-solid partnership with Nasdaq.

01:00:52:00 - 01:01:14:23

Karen Snow (Nasdaq)

The Nasdaq-100 is home to the biggest and most disruptive companies in tech. Semiconductors are really the brains behind all of the computing and innovation that we see across every sector. So they're really the heart of all of that innovation. I would say Microchip, KLA and Honeywell are all leaders as it relates to the semiconductor industry.

01:01:15:01 - 01:01:25:09

Vimal Kapur (Honeywell)

I don't think two decades back we had any electronics in our homes in form of semiconductor or in our cars. And today I'm not aware of any product where there’s no semiconductor.

01:01:25:15 - 01:01:45:05

Mark Shirey (KLA)

The end use of computer chips is so varied these days. You have huge data centers, you're managing our social networks and everything we do online. You have things like autonomous driving, electrification and increasing chip content in cars. You have smartphones, wearables.

01:01:45:09 - 01:02:07:12

Ganesh Moorthy (Microchip)

In the early years, making it smaller meant you were able to make it less expensive. You were able to get higher performance. Today, it's more important to also think about what kind of functionality can you pack into it, so that you can have a single chip or a small set of chips that are able to provide the type of functionality, the type of innovation you need without only thinking about performance and power.

01:02:07:22 - 01:02:27:14

Vimal Kapur (Honeywell)

Let's think of a phone we all used, from around 2005. Essentially, you could make a call on a little screen, but if you flip 15 years down the line, you won't even recognize that the phone looked like that. So, what has changed? It’s semiconductor because it gives much more optionality on what you can do with the compute power along with the software, the combination of that.

01:02:27:23 - 01:02:32:21

Ganesh Moorthy (Microchip)

And I think that's what semiconductors do and what Microchip products do. It's empowering that innovation.

01:02:33:13 - 01:02:41:22

Ryan McCormack (Invesco QQQ)

We say they're innovative because they really commit to long-term development of the various themes, right. They’re deep rooted in research and development.

01:02:42:04 - 01:02:57:19

Karen Snow (Nasdaq)

So, I don't think of this semiconductor industry in a linear way. I think of it very much as an ecosystem. And each one of the players contributing to that ecosystem. For Honeywell, for example, that can be in their approach to building and industrial automation.

01:02:58:08 - 01:03:19:13

Vimal Kapur (Honeywell)

If you see the buildings today versus how they looked many years back, you have face recognition as a primary means to recognize people and make them navigate through the office building or having new sensors for air quality — behind which is the semiconductor, which is enabling that technology. Across the board, semiconductors have impacted every segment in the last 5 to 10 years’ time.

01:03:19:18 - 01:03:43:04

Ganesh Moorthy (Microchip)

We make microchips. How about that, we’re done. What Microchip products do is make those products, through the innovation our customers do, into things that can be better or faster or less expensive. More features. Many of our customers are those who build circuit boards, which use semiconductors. Often they are selling to someone else who is assembling that into a system.

01:03:43:04 - 01:04:02:16

Ganesh Moorthy (Microchip)

And that system is being sold to an end consumer. You know, there's a part of what semiconductors have been doing on a consistent basis. Every year you bring out more functions, more features. The area of medical technology is one in which semiconductors have increasingly had more and more and more impact in terms of better outcomes that you have.

01:04:02:19 - 01:04:16:16

Ganesh Moorthy (Microchip)

Whether that is better outcomes in hospitals, where the big types of machinery are used for ultrasound and scanning and various other things, to all the things that are in the doctor's office, to what you do at home. All of those different things require semiconductors.

01:04:17:13 - 01:04:57:21

Mark Shirey (KLA)

What KLA and inspection and metrology brings is very high sensitivity inspection tools to detect tiny anomalies in the pattern, tiny pattern defects, tiny particles, all of which would kill a semiconductor chip. And that could mean one less smartphone can be delivered because that chip didn't work. As our customers shrink their devices, they introduce new materials, new processes. Every 12 to 24 months, we have upgrade our tools to serve those challenges. So it's really just continuous improvement and innovation to keep up with the semiconductor advancements.

01:04:58:05 - 01:05:20:10

Ryan McCormack (Invesco QQQ)

I think if you go four, five, ten, 20 years ago and asked, you know, where are we going to be? I mean, people can't really fathom the capabilities that we have at our fingertips. But, you know, ultimately, I think it's going to be driven by our desire as a society to be better connected. It's sort of, you know, one of these things where if you want to think big, then sometimes you need to start small.

01:05:23:20 - 01:05:33:07

Invesco QQQ Disclaimer

Consider the Fund's investment objective risks, charges and expenses before investing. Visit Invesco.com for a prospectus with information. Read it carefully before investing.

On-Screen Disclaimer Language

(Section 1)

NOT A DEPOSIT | NOT FDIC INSURED | NOT GUARANTEED BY THE BANK | MAY LOSE VALUE | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

THIS CONTENT SHOULD NOT BE CONSTRUED AS AN ENDORSEMENT FOR OR A RECOMMENDATION TO INVEST HONEYWELL INTERNATIONAL INC, MICROCHIP TECHNOLOGY INC, OR KLA CORP.

NEITHER HONEYWELL INTERNATIONAL INC, MICROCHIP TECHNOLOGY INC, NOR KLA CORP ARE AFFILIATED WITH INVESCO.

There are risks involved with investing in ETFs, including possible loss of money. ETFs are subject to risks similar to those of stocks. Investments focused in a particular sector, such as technology, are subject to greater risk, and are more greatly impacted by market volatility, then more diversified investments.

Before investing, consider the Fund's investment objectives, risks, charges and expenses. Visit invesco.com for a prospectus containing this information. Read it carefully before investing.

Only three of 101 underlying Invesco QQQ ETF fund holdings are featured. Participation is meant to help illustrate representative innovative themes, not serve as a recommendation of individual securities. As of 5/17/23, Honeywell International, Inc. made up 0.97%, KLA Corporation made up 0.43% and Microchip Technology, Inc. made up 0.31% of Invesco QQQ.

As of 5/17/23 Invesco QQQ top ten holdings are: Microsoft Corporation 13.27%, Apple, Inc. 12.53%, Amazon.com, Inc. 6.75%, NVIDIA Corporation 5.51%, Alphabet, Inc. Class A 4.18%, Alphabet, Inc. Class C 4.13%, Meta Platforms, Inc. Class A 3.99%, Tesla, Inc. 3.14%, Broadcom, Inc. 2.03% and PepsiCo, Inc. 1.96%. Holdings are subject to change and should not be considered buy/sell recommendations. See invesco.com for current holdings.

The Nasdaq-100 Index comprises the 100 largest non-financial companies traded on the Nasdaq. An investment cannot be made directly into an index.

Invesco Distributors, Inc. NA2821914

(Section 2)

Nasdaq®, Nasdaq-100 Index®, Nasdaq-100®, 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.

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).

The information contained in the video is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. The Corporations do not make any recommendation to buy or sell any security or any representation about the financial condition of any company.

Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. Actual results may differ materially from those expressed or implied. Past performance is not indicative of future results. Investors should undertake their own due diligence and carefully evaluate companies before investing.

ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.

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