INSIGHTS & EDUCATION

Investing basics

Learn why exchange-traded funds (ETFs) can be a smart investment choice.

Transcript

Narration:

ETF is short for exchange traded fund. ETFs track the performance of a particular stock market index like the S&P 500 or NASDAQ-100. ETF fund managers typically seek to mirror the index's holdings and weightings. Giving investors broad exposure to a specific asset class or market sector. Only ETF shares can help provide you with investment diversification. Potentially helping to manage your overall investment risk. And there are many other important benefits that ETFs can offer. Want to learn more, check out our other videos.

Narration (Disclaimer)

Before investing consider the fund investment objectives, risks, charges and expenses. Visit Invesco.com for a prospectus with this information. Read it carefully before investing.

Disclosures (not being read, only showing up on screen):

Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May lose Value | Not Insured by Any Federal Agency.

The Nasdaq-100 Index comprises the 100 largest non-financial companies traded on the Nasdaq. An investor cannot invest directly in an index.

There are risks involved with investing in ETFs, including possible loss of money, index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index.

Investments focused in a particular industry or sector are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

Diversification does not guarantee a profit or eliminate the risk of loss.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.

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, 20,000, 25,000, 50,000, 80,000, 100,000 or 150,000 Shares.

Invesco Distributors, Inc. 7/23 NA2225802.

Transcript

Narration:

Thinking about investing in an exchange traded fund or ETF? Let's take a closer look at five potential ETF benefits that may help you decide. First, ETFs tend to cost less than other funds. In 2021, the average ETF cost less than one half of the cost of a comparable mutual fund. Those savings can really add up over time. ETFs are also easy to buy and sell. Just like stocks, you can trade them on a number of exchanges whenever markets are open and they're transparent. You can see the prices of ETFs in real time and know exactly what securities they're holding on a daily basis. ETFs can give you control over which sectors you invest in, so, your portfolio reflects what's most important to you. And most ETFs are tax efficient. Many ETFs do not have annual capital gains distributions and typically defer capital gains until you sell your shares. Want to learn more? Check out our other videos.

Narration (Disclaimer)

Before investing consider the fund investment objectives, risks, charges and expenses. Visit Invesco.com for a prospectus with this information. Read it carefully before investing.

Disclosures (not being read, only showing up on screen):

Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by Any Federal Agency.

There are risks involved with investing in ETFs, including possible loss of money, index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index.

Invesco does not offer tax advice. Please consult your tax adviser for information regarding your own personal tax situation. There is no guarantee that ETFs will not distribute capital gains to their shareholders.

Most ETFs disclose their holdings daily.

Investments focused in a particular industry or sector are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

Since ordinary brokerage commissions apply for each ETF buy and sell transaction, frequent trading activity may increase the cost of ETFs.

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 fo1 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.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.

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, 20,000, 25,000, 50,000, 80,000, 100,000, or 150,000 Shares.

Invesco Distributors. Inc. 7/23 NA2225816.

Transcript

Narration:

How do exchange traded funds or ETFs compare to mutual funds? Much like mutual funds, ETFs can offer you a quick and easy way to help build a diversified, professionally managed portfolio. By pooling your funds with other individuals, you're able to purchase a broad basket of securities through a single investment. Both give you a wide range of investment choices. And because many ETFs passively track a market index, much like the index mutual funds, they're typically able to charge lower fees than other more actively managed investments. But ETFs may also deliver certain advantages that most mutual funds often can't provide. Like simple pricing. You don't have to choose between multiple share classes with different fee structures, investment minimums and redemption rules. There's only one type of ETF shares, no investment minimums, and no restrictions on buying and selling your shares whenever the markets are trading. Want to learn more? Check out our other videos.

Narration (Disclaimer)

Before investing consider the fund investment objectives, risks, charges and expenses. Visit Invesco.com for a prospectus with this information. Read it carefully before investing.

Disclosures (not being read, only showing up on screen):

Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by Any Federal Agency.

There are risks involved with investing in ETFs, including possible loss of money, index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index. Investments focused in a particular industry or sector are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

Since ordinary brokerage commissions apply for each ETF buy and sell transaction, frequent trading activity may increase the cost of ETfs.

Diversification does not guarantee a profit or eliminate the risk of loss.

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.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.

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, 20,000, 25,000, 50,000, 80,000, 100,000, or 150,000 Shares.

Invesco Distributors. Inc. 7/23 NA2225822.

Transcript

Narration:

What's special about the Invesco QQQ Exchange Traded fund or ETF? And why should you consider investing in it? The QQQ ETF closely tracks the NASDAQ-100 Index, comprised of the 100 largest non-financial funds listed on the Nasdaq exchange and the home of many of the world's most innovative tech companies. But both the index and the QQQ ETF are about much more than just tech stocks, other sector giants and consumer discretionary communication services and health care all called the Nasdaq-100 home. Innovative leaders representing some of the largest companies in the U.S. and the world's economy all available through one investment. That's the power of QQQ. Want to learn more, check out our other videos.

Narration (Disclaimer)

Before investing consider the fund investment objectives, risks, charges and expenses. Visit Invesco.com for a prospectus with this information. Read it carefully before investing.

Disclosures (not being read, only showing up on screen):

Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by Any Federal Agency.

The Nasdaq-100 Index comprises the 100 largest non-financial companies traded on the Nasdaq. An investor cannot invest directly in an index.

There are risks involved with investing in ETFs, including possible loss of money, index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index.

Investments focused in a particular industry or sector are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

Diversification does not guarantee a profit or eliminate the risk of loss.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.

The Index and Fund use the Industry Classification Benchmark (“ICB”) classification system which is composed of 11 economic industries: basic materials, consumer discretionary, consumer staples, energy, financials, health care, industrials, real estate, technology, telecommunications and utilities.

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, 20,000, 25,000, 50,000, 80,000, 100,000, or 150,000 Shares.

Invesco Distributors. Inc. 7/23 NA2225830.

Transcript

Narration:

Wondering how to access the innovators of the Nasdaq-100 through the Invesco QQQ Exchange traded fund or ETF? It couldn't be easier. You can find QQQ on almost every trading platform.

Many accessible directly through the QQQ website or with help from your financial professional. And ETFs are listed on all major U.S. stock exchanges. You can buy and sell the QQQ ETF any time during the trading day through your brokerage account. Like stocks, ETF transactions occur almost instantly. So you don't have to wait until market close for your trade to be processed. Your access to some of today's most innovative companies could be just a click away. That's the power of QQQ. Want to learn more, check out our other videos.

Narration (Disclaimer)

Before investing consider the fund investment objectives, risks, charges and expenses. Visit Invesco.com for a prospectus with this information. Read it carefully before investing.

Disclosures (not being read, only showing up on screen):

Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by Any Federal Agency.

The Nasdaq-100 Index comprises the 100 largest non-financial companies traded on the Nasdaq. An investor cannot invest directly in an index.

There are risks involved with investing in ETFs, including possible loss of money, index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index.

Investments focused in a particular industry or sector are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

Diversification does not guarantee a profit or eliminate the risk of loss.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.

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, 20,000, 25,000, 50,000, 75,000, 80,000, 100,000 or 150,000 Shares.

Invesco Distributors, Inc. 7/23 NA2225839.

Key information about ETFs

Exchange traded funds (ETFs) are a type of investment that can provide you with diversified exposure to a certain focused area or sector of the market. Typically, ETFs are designed to closely track a particular market index like the S&P 500 or the Nasdaq-100. ETFs are ‘pooled fund’ investments (meaning the assets of many individual investors are pooled together to purchase the fund’s holdings).

By owning shares in the ETF, you gain exposure to its holdings without owning the underlying assets. ETFs can offer a convenient way to help achieve diversification that can help reduce the overall investment risk of your portfolio.

Certain funds and portfolios, particularly the Invesco ETFs, in and of themselves do not qualify as diversified investment strategies.

There are ETFs available for a wide range of investment choices — from tracking domestic and international stock indexes, to market sectors and even commodity indexes. ETFs offer a way for you to invest broadly across an area of the market you’re interested in or care about through a single bundled investment. They also tend to be passively managed, rather than active, and generally have low fees.

Unlike other investment vehicles, ETFs do not require a large minimum investment. And because they’re traded on exchanges, like stocks, you can get started by purchasing just a single share if you want.

Low cost: Since ordinary brokerage commissions apply for each ETF buy and sell transaction, frequent trading activity may increase the cost of ETFs.

ETFs combine some of the key benefits of mutual funds (broad diversification and sector-specific strategies) with the flexible trading of stocks. They typically carry lower fees than mutual funds, as well as greater transparency.

ETFs offer greater trading flexibility and control compared to mutual funds (which are priced only once daily at market close). ETFs offer real-time pricing, their holdings are disclosed daily, and they can be traded anytime throughout the day — giving you far more control over buying and selling shares.

And perhaps most importantly, ETFs have simple, transparent pricing and expenses — no multiple share classes or fee structures.

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.

Transparency: Most ETFs disclose their holdings daily.

You can invest in ETFs through your trading platform of choice, or with your financial professional. If you need additional help investing in Invesco’s QQQ ETF, click here to find out more.

When buying or selling ETF shares, there are a few trading tips you may want to consider. If possible, avoid transactions at the open and close of the market — when prices tend to be more volatile. In a similar vein, try to pre-determine the price points at which you want to buy or sell shares, using limit orders rather than market orders. Also, investing in ETFs that have a significant enough daily trading volume may help to minimize the spread between ‘bid’ and ‘ask’ prices.

The Invesco QQQ ETF tracks the Nasdaq-100 Index--an index comprised of the 100 largest non-financial companies listed on the Nasdaq exchange (based on market cap). Not only does Invesco QQQ provide access to some of the most innovative companies all in one fund, it’s one of the oldest (established in 1999) and largest ETFs (with more than $229 billion in assets). And it’s rated the best-performing large-cap growth fund (1 of 347) based on total return over the past 15 years by Lipper, as of December 31, 2023

Fund assets as of December 31, 2023.

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. Source: The Lipper one-year rank 2% (12 of 675), five-year rank 1% (4 of 591), 10-year rank 1% (1 of 462), 15-year rank 1% (1 of 347) as of December 31, 2023.

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