Invesco QQQ is one of the most actively traded securities, with a history dating back to 1999. Like other passively managed ETFs, QQQ tracks an index. The Nasdaq-100 index includes many of the world’s leading technology stocks, as well as the companies at the forefront of many long-term innovative themes shaping today’s economy.

For more information on how innovation may help drive the performance of Invesco QQQ, click here.

Source: Bloomberg L.P., QQQ is the 2nd most-traded ETF in the US based on average daily volume traded, as of March 31, 2025.

Some investors use ETFs to gain exposure to broad ranges of companies rather than picking individual stocks, which reduces single-stock risk. For example, Invesco QQQ provides diversified exposure to many innovative companies, including leaders in software, hardware, e-commerce, social media, biotechnology, and other areas.

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

Typically, yes. ETFs are generally more tax efficient than comparable mutual funds because the “in-kind” creation and redemption feature of ETFs is designed to reduce cash transactions and capital gains distributions. As a result, investors tend to keep more of their returns.

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.

Invesco does not provide tax advice. Federal and state tax laws are complex and constantly changing. Investors should always consult their own legal or tax advisor for information concerning their individual situation.

The decision to include ETFs in your portfolio will vary by your unique goals, time horizon, and risk tolerance. Investors can help diversify their portfolio with a handful of broad-based ETFs for various asset classes.

The market price of an ETF share is determined by the net asset value (NAV) of the underlying portfolio as well as supply and demand in the marketplace. Bid-ask spreads and premiums and discounts to NAV may also impact the price an investor pays for an ETF share.

For more details on how ETFs work, click here.

Bid/ask spread is the amount by which the ask price exceeds the bid price for an asset in the market.

ETFs can be actively or passively managed, and the choice depends on an investor’s financial objectives. Some financial professionals use a mix of active and passive ETFs in diversified client portfolios.

Invesco QQQ is passively managed and tracks the Nasdaq-100 index, which offers exposure to many industry-leading companies in a single investment.

For more information on how Invesco QQQ can fit into your clients’ portfolios, click here.

ETFs are different from individual stocks in that an ETF’s liquidity is based on more than trading volume alone. A better predictor of an ETF’s liquidity may be the liquidity of the underlying holdings. For example, an ETF with relatively low trading volume that invests in highly liquid large-cap U.S. stocks will generally have high liquidity and low bid-ask spreads.

QQQ is one of the most heavily traded ETFs by volume.

For more information on liquidity and other considerations when trading ETFs, click here.

Source: Bloomberg L.P., QQQ is the 2nd most-traded ETF in the US based on average daily volume traded, as of March 31, 2025.

An ETF’s total cost of ownership depends on more than just its expense ratio. Investors also need to consider bid-ask spreads, trading commissions, and premiums and discounts, for example.

For more information on calculating costs of ETFs, click here.

Bid/ask spread is the amount by which the ask price exceeds the bid price for an asset in the market.

Invesco QQQ ETF has typically outperformed broad equity benchmarks like the S&P 500.

For more information on Invesco QQQ’s performance, click here.

Standardized performance. Performance data quoted represents past performance, which is not a guarantee of future results. An investor cannot invest directly in an index. Index returns do not represent Fund returns.

Source: Bloomberg L.P., QQQ NAV 10-year performance reflected 16.98% growth versus 12.48% by the S&P 500, as of March 31, 2025.