ETF Three reasons why banks may be compelling now
Generally strong earnings, growth potential driven by artificial intelligence (AI), and recent regulatory changes are positives for banks.
October 16, 2025
ETF
Case study: Accessing innovation and growth with QQQ and QQQM
October 10, 2025
Key takeaways
The challenge
As the US economy continues to slow, investors are seeking alternative opportunities for growth.
The opportunity
Invesco QQQ and QQQM ETFs offer access to a diverse portfolio of large-cap companies that have a legacy of innovation and growth.
The solution
Institutional investors are using NASDAQ-100 ETFs as a complement or replacement for traditional beta investments tied to the S&P 500.
Economic uncertainty is growing worldwide. Many asset owners have turned to Invesco QQQ and Invesco NASDAQ 100 ETF (QQQM) for tactical alpha generation and building long-term strategic holdings, thanks to their historical outperformance versus the S&P 500 and robust fundamentals.
The challenge
As macro uncertainty increases, earnings growth estimates have slowed. This pattern is stoking fears of a broader economic slowdown. Persistent inflation, US trade relation uncertainty, and slowing economic activity have investors searching for growth. Amidst these pressures, NASDAQ-100 ETFs provide exposure to companies with stronger earnings per share (EPS) growth estimates than the S&P 500 across most time periods.
The opportunity
Invesco QQQ and Invesco NASDAQ 100 ETF (QQQM) could be compelling solutions due to their legacy of innovation and growth fueled by robust research and development spending. They provide investors access to a diverse group of companies with exposure to disruptive technologies, typically with high profit margins and strong fundamentals. Over the past 10 years, NASDAQ-100 companies have seen higher revenue, earnings, and dividend growth than S&P 500 companies.
The solution
Allocating to QQQ/QQQM could be an ideal strategy for investors seeking new avenues for growth. As of June 30, 2025, asset owners allocated approximately $2.6 billion1 to these funds for tactical alpha2 generation as well as a long-term, strategic holding. As of September 30, 2025, the NASDAQ-100 outperformed the S&P 500 on a year-to-date, 3-year, 5-year, and 10-year basis.
|
YTD |
3 Years Annualized |
5 Years Annualized |
10 Years Annualized |
|---|---|---|---|---|
NASDAQ 100 Index |
18.10% |
32.07% |
17.58% |
20.55% |
S&P 500 Index |
14.83% |
24.91% |
16.46% |
15.29% |
Difference |
3.27% |
7.16% |
1.12% |
5.26% |
See the full list of standardized performance across each fund.
How can we meet your needs?
Explore how our ETF capabilities can help enhance institutional portfolios and our team to learn how QQQ and QQQM can support investor needs.
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