Invesco and Nasdaq are pioneers in innovative solutions, partnering together to help people access the world’s most innovative companies. Today, that combined innovation continues, as we strive to help investors achieve their evolving goals.
Below are the six steps incorporated in the underlying indexes of our new funds.
The foundation of these products is the NASDAQ-100 and NASDAQ Next Gen 100 indexes, which provide access to innovative companies.
Companies are removed whose business activities are incompatible with ESG principles, such as controversial weapons or tobacco products.
Each company must be ranked 4 or lower on a 5-point controversy scale (lower is better).1
Each company must be ranked lower than 40 on a 100-point ESG risk rating score (lower is better).2
Company weights are tilted toward companies with more attractive ESG scores.
The end result is two new indexes our products track, which are the NASDAQ-100 ESG Index and NASDAQ Next Gen 100 ESG Index.
Potentially enhance your core exposure within large or mid-cap growth equity investments.
Complement your large-cap value equity strategies.
Replace high-fee, underperforming active strategies.
Total Cumulative Returns (3/10/1999 - 3/31/2022)
Source: Bloomberg L.P., Data for total returns from March 10, 1999 through March 31, 2022. The above chart is presented for the purpose of illustrating the long-term performance of large-cap growth markets versus the broader market over time. The starting time period was selected based on the inception of the oldest product in the Invesco QQQ innovation suite. QQQ has an existing performance record, which can be found here. Index performance is not indicative of Fund performance, nor is it an indication of how a Fund could or will perform. An investment cannot be made directly into an Index. Past performance is not a guarantee of future results.
ESG at Invesco
Learn about our approach to responsible investing, our firm-wide commitment to ESG principles, and our comprehensive lineup of ESG strategies.
Discover innovation with QQQ
Learn how Invesco QQQ gives investors access to some of today’s most innovative companies, all in one exchange-traded fund (ETF).
Invesco QQQ monthly review
Read about the latest Invesco QQQ ETF fund performance and insights from our strategists.
The rise of ESG-focused ETFs
Learn how some of the most progressive, innovative, and best-run companies are those that view themselves as agents of positive change.
A transformative change to healthcare
Learn how COVID sparked disruptive innovations in healthcare and showcased the visionary thinking of the companies that comprise the QQQ ETF.
Controversy Scale: The score ranges from 1 (low impact) to 5 (severe impact), depending on the reputation risk to the company and potential impact on stakeholders. Sustainalytics, a globally-recognized independent provider of ESG research, ratings, and data, will identify incidents and events via a daily monitoring system and will give a controversy score.
The ESG Risk Rating Score, provided by Sustainalytics, is designed to measure the magnitude of a company’s unmanaged ESG risk. Companies are assigned risk scores ranging from 0 (indicating that ESG risks have been fully managed) to 100 (indicating the highest level of unmanaged ESG risk), and the Index Provider excludes companies with an ESG risk rating of 40 or higher (i.e., a “severe risk” rating) from the Underlying Index.
| Invesco ESG NASDAQ 100 ETF | Invesco ESG NASDAQ Next Gen 100 ETF | Invesco QQQ | Invesco NASDAQ 100 ETF | Invesco NASDAQ Next Gen 100 ETF | Invesco NASDAQ 100 Index Fund | |
|---|---|---|---|---|---|---|
| Ticker | QQMG | QQJG | QQQ | QQQM | QQQJ | IVNQX (R6 Shares) |
| Structure | ETF | ETF | Unit Trust ETF | ETF | ETF | Mutual Fund |
| Expense Ratio | 0.20% | 0.20% | 0.20% | 0.15% | 0.15% | 0.30%1 |
| Gross Expense Ratio | 5.31% | |||||
| Underlying Index | Nasdaq-100 ESG Index | Nasdaq Next Generation 100 ESG Index | NASDAQ-100 Index | NASDAQ-100 Index | NASDAQ Next Generation 100 Index® | NASDAQ-100 Index |
| Inception Date | 10/27/2021 | 10/27/2021 | 3/10/1999 | 10/13/2020 | 10/13/2020 | 10/13/2020 |
| For Investors Seeking | Access to the NASDAQ-100 with a select ESG screening criteria | Exposure to mid-cap Nasdaq innovators with a select ESG screening criteria | Exposure to the NASDAQ-100 through the 2nd most traded ETF² | Low fee ETF access to the NASDAQ-100 | Exposure to mid-cap Nasdaq innovators | The ability to access the NASDAQ-100 through a mutual fund |
| Fund Materials | VIew fund information | View infographic | View infographic | |||
| Fund Links | View QQMG product details | View QQJG product details | View QQQ product details | View QQQM product details | View QQQJ product details | View IVNQX product details |
[1] Net = total annual operating expenses less any contractual management fee waivers in effect through at least December 31, 2022.
Class R6 Shares are primarily intended for retirement plans and shareholders of omnibus intermediaries that meet certain standards and for institutional investors. See the prospectus for more information.
[2] Source: Bloomberg L.P., in the US based on average daily volume traded, as of March 31, 2022.
Since ordinary brokerage commissions apply for each 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 for ETFs. Typically they are still more liquid than most traditional mutual funds because they trade on exchanges. Unit trusts have a stated expiration date based on what investment in the portfolio and generally make one public offering of a fixed number of units. In some cases, a secondary market is maintained allowing existing unit holders to sell their units and for new investors to buy units. Investors should talk with their financial professional regarding their situation before investing.
NA2195044
ETFs
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Underlying Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.
Investments focused in a particular sector, such as information technology, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
QQMG & QQJG
Stocks of companies with favorable ESG attributes may underperform the market as a whole. As a result, the Fund may underperform other funds that do not screen companies based on ESG attributes. The criteria used to select companies for investment may result in the Fund investing in securities, industries or sectors that underperform the market as a whole or underperform other funds screened for ESG standards. The Fund is non-diversified and may experience greater volatility than a more diversified investment. The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.
QQQM & QQQJ
The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.
The Fund is non-diversified and may experience greater volatility than a more diversified investment.
QQQJ
Stocks of medium-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale.
Invesco NASDAQ 100 Index Fund:
In general, stock values fluctuate, sometimes widely, in response to activities specific to the company as well as general market, economic and political conditions.
Derivatives may be more volatile and less liquid than traditional investments and are subject to market, interest rate, credit, leverage, counterparty and management risks. An investment in a derivative could lose more than the cash amount invested.
The Fund may become “non-diversified,” as defined under the Investment Company Act of 1940, as amended, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the Index. Shareholder approval will not be sought when the Fund crosses from diversified to non-diversified status under such circumstances.
Investments focused in a particular sector, such as technology, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.
Unlike many investment companies, the Fund does not utilize an investing strategy that seeks returns in excess of its Underlying Index. Therefore, the Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its Underlying Index, even if that security generally is underperforming.
The NASDAQ-100 Index is comprised of 100 of the largest non-financial companies on the Nasdaq.
The NASDAQ Next Generation 100 Index is comprised of the next generation of non-financial companies on Nasdaq; that is, the largest 100 companies outside of the NASDAQ-100 Index.
The Russell 1000® Growth Index measures the performance of the largecap growth segment of the US equity universe.
An investor cannot invest directly in an index. The results assume that no cash was added to or assets withdrawn from an Index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.
The sponsor of the Nasdaq-100 TrustSM, a unit investment trust, is Invesco Capital Management LLC (Invesco). NASDAQ, Nasdaq-100 Index, Nasdaq-100 Index Tracking Stock and QQQ are trade/service marks of The Nasdaq Stock Market, Inc. and have been licensed for use by Invesco, QQQ's sponsor. NASDAQ makes no representation regarding the advisability of investing in QQQ and makes no warranty and bears no liability with respect to QQQ, the Nasdaq-100 Index, its use or any data included therein.
The Invesco NASDAQ 100 ETF is not sponsored, endorsed, sold or promoted by the NASDAQ OMX Group, Inc. or its affiliates (NASDAQ OMX, with its affiliates, are referred to as the "Corporations"). The Corporations have no liability in connection with the administration, marketing or trading of the Invesco NASDAQ QQQ ETF. "NASDAQ®" is a registered trademark and is used under license.
The Invesco NASDAQ Next Gen 100 ETF is not sponsored, endorsed, sold or promoted by the NASDAQ OMX Group, Inc. or its affiliates (NASDAQ OMX, with its affiliates, are referred to as the "Corporations"). The Corporations have no liability in connection with the administration, marketing or trading of the Invesco NASDAQ Next Gen 100 ETF. "NASDAQ®" is a registered trademark and is used under license.
The Invesco NASDAQ 100 Index Fund is not sponsored, endorsed, sold or promoted by the NASDAQ OMX Group, Inc. or its affiliates (NASDAQ OMX, with its affiliates, are referred to as the "Corporations"). The Corporations have no liability in connection with the administration, marketing or trading of the Invesco NASDAQ 100 Index Fund. "NASDAQ®" is a registered trademark and is used under license.
The Nasdaq-100 ESG Index is designed to measure the performance of companies included in the Nasdaq-100 Index that also meet environmental, social and governance ("ESG”) criteria. To satisfy the ESG criteria, an issuer must not be involved in certain specific business activities, such as alcohol, cannabis, controversial weapons, gambling, military weapons, nuclear power, oil & gas, and tobacco. Additionally, an issuer must be deemed compliant with the United Nations Global Compact principles, meet business controversy level requirements, and have an ESG Risk Rating Score that meets the requirements for inclusion in the Index.
The Nasdaq Next Generation 100 ESG Index is designed to measure the performance of companies included in the Nasdaq Next Generation 100 Index that also meet environmental, social and governance ("ESG”) criteria. To satisfy the ESG criteria, an issuer must not be involved in certain specific business activities, such as alcohol, cannabis, controversial weapons, gambling, military weapons, nuclear power, oil & gas, and tobacco. Additionally, an issuer must be deemed compliant with the United Nations Global Compact principles, meet business controversy level requirements, and have an ESG Risk Rating Score that meets the requirements for inclusion in the Index.
The Underlying Index reflects information developed by Sustainalytics, an independent provider of ESG research, ratings, and data for the Underlying Index. Such information and data are proprietary of Sustainalytics and/or its third-party suppliers and are provided only in connection with the Underlying Index. They do not constitute an endorsement of any product or project, are not investment advice and are not warranted to be complete, timely, accurate or suitable for a particular purpose. Sustainalytics has no liability for the construction or administration of the Underlying Index and has no liability in connection with the administration, marketing or trading of the Fund.
This link takes you to a site not affiliated with Invesco. The site is for informational purposes only. Invesco does not guarantee nor take any responsibility for any of the content.