ETF QQQM: Innovation for the long term

Innovation has had a long-term impact on the global economy. Does it have a long-term place in your investment strategy? The Invesco NASDAQ 100 ETF (QQQM) provides exposure to the innovative companies of the NASDAQ-100 Index — an index that has delivered long-term outperformance against major US benchmarks. And QQQM’s low costs and tax efficiency versus its large-cap growth peers may appeal to those looking for long-term growth.

As QQQM hits its five-year anniversary, explore what this equity ETF could do for your portfolio in the next five years and beyond.

Five facts about QQQM and the Nasdaq-100 Index

1. The Nasdaq-100 Index has outperformed in the long term

The Nasdaq-100 Index has outperformed both the S&P 500 and the Russell 1000 Growth indexes by providing access to leading large-cap growth companies at the forefront of innovation.

2. Nasdaq-100 Index companies have committed to innovation through investment

A key measure of a company’s commitment to innovation is research and development spending. Companies in the Nasdaq-100 Index have reinvested in their own development at a high rate.

3. Innovation isn’t limited to technology companies

Innovation has spurred growth and efficiency across the economy. The breadth of this impact is reflected in QQQM’s holdings, which are diversified well beyond the technology sector.

4. QQQM’s expense ratio is lower than its peer group 

The less you pay in expenses, the more you get to keep in your portfolio. QQQM’s expense ratio of 0.15% is 77% lower than its peer group median, which makes it attractive for those looking for long-term growth.

5. QQQM may help lower investors’ tax bills 

Effective tax management can help you keep more of your portfolio’s earnings — that includes limiting certain types of capital gains distributions that can add to your tax bill. Unlike many of its peers, QQQM hasn’t paid any capital gains distributions since its inception.

Using QQQM in a portfolio

QQQM provides access to innovative companies — not only in the technology sector, but also in a variety of sectors such as consumer discretionary, health care, and others. This makes it a compelling opportunity for those who want to invest in the innovative themes driving the long-term growth potential of the US economy and markets.

With its large-cap growth focus, QQQM can be used to anchor the growth sleeve in a diversified portfolio, and to complement existing large-cap value equity exposures.

Additional resources

• Invesco Nasdaq-100 ETF QQQM Commentary (PDF)
• Invesco Nasdaq-100 ETF QQQM Fact Sheet (PDF)
• Explore the full Invesco QQQ innovation suite
• Discover more Invesco ETFs