Invesco NASDAQ Future Gen 200 ETF (QQQS) will screen
smaller-cap companies by estimated patent value to select 200
Nasdaq-listed companies for investmentNDAQ
ATLANTA, Oct. 13,
2022 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ), a
leading global asset management firm, announced today the expansion
of the Invesco QQQ Innovation Suite to include a new
exchange‑traded fund (ETF) that will access smaller-cap companies
screened by a key marker of innovation – high quality
patents. The Invesco NASDAQ Future Gen 200 ETF (QQQS) will
add an efficient overlay to small-cap and micro-cap companies
listed on The Nasdaq Stock Market that are not included in the
Nasdaq 100 Index® or Nasdaq Next Generation 100
Index™. High quality and high value patents may be
an indicator of future innovation potential in a smaller-cap
company.
"Companies included in the Invesco QQQ Innovation Suite have
always spent considerably more on research and
development1 and Invesco wanted to capture that same
commitment to innovation on a smaller cap-tier," said John Hoffman, Americas Head of ETFs and Index
Strategies, Invesco. "By applying a high quality patent screen, the
QQQS portfolio will focus on smaller-cap companies with a
competitive advantage on certain inventions. This will allow
investors to customize their market capitalization exposure to
companies who are pioneering the future."
Two years ago on October 13, 2020,
the Invesco NASDAQ 100 ETF (QQQM) and Invesco NASDAQ Next Gen 100
ETF (QQQJ) were launched to offer investors access to
category-defining companies with a known legacy of innovation, as
well as the next generation of companies who are just beginning to
impact the world. This personalized exposure has resonated with
investors, and together QQQM and QQQJ have gathered $5.2 Billion in AUM since launch.2
Now, the addition of QQQS to the Innovation Suite has created a
modular set of three ETFs that can be used in together or
separately to personalize investor access to companies of all sizes
focused on future innovation.
QQQS will track the Nasdaq Innovators Completion Cap Index™, an
intelligent, equal weighted index that uses a patent data screen
created by IPR Strategies. IPR Strategies, a leader in the
science of patent valuation, believes that high quality and high
value patents represent a future asset and are an early indicator
of future positive value. IPR Strategies works with Nasdaq to
assign a realistic value to patents based on multiple parameters,
including a high commitment to research and development and
valuable intellectual property, to source small-cap and micro-cap
companies that may be laying the groundwork to become the next
industry giants. Given its long-standing expertise in smart beta,
Invesco believes that the addition of a thoughtfully composed layer
of criteria (patent value) to an overall capitalization screen
(small and micro-cap) may be successful in identifying companies
with a focus on innovation in their industries.
"The future of innovation, as uncovered by the patent
screening process, underscores the transformative changes of
the companies within their respective industries," said
Cameron Lilja, Vice President,
Global Head of Index Product, Nasdaq. "We are excited to expand our
Invesco partnership with this addition to their suite of
Nasdaq index-based products, which provides investors with
another option to help them achieve their investment
goals."
1 Bloomberg L.P, Nasdaq-100 companies Research
& Development reinvestment rate is 10.1% as compared to 7.3% by
S&P 500 companies as of March 31,
2022. Most recent data available.
2 Bloomberg L.P, as of October 3, 2022
About Invesco Ltd.
Invesco Ltd. (Ticker NYSE: IVZ) is a global independent
investment management firm dedicated to delivering an investment
experience that helps people get more out of life. Our distinctive
investment teams deliver a comprehensive range of active, passive
and alternative investment capabilities. With offices in more than
20 countries, Invesco managed US$1.4
trillion in assets on behalf of clients worldwide as of
June 30, 2022. For more information,
visit www.invesco.com/corporate.
About Nasdaq
Nasdaq (Nasdaq: NDAQ) is a global technology company serving the
capital markets and other industries. Our diverse offering of data,
analytics, software and services enables clients to optimize and
execute their business vision with confidence. To learn more about
the company, technology solutions and career opportunities, visit
us on LinkedIn, on Twitter @Nasdaq, or at www.nasdaq.com.
Important Information:
Invesco Distributors, Inc. is not affiliated with Nasdaq or IPR
Strategies.
Beta is a measure of risk representing how a security is
expected to respond to general market movements. Smart Beta
represents an alternative and selection index based methodology
that seeks to outperform a benchmark or reduce portfolio risk, both
in active or passive vehicles. Smart beta funds may underperform
cap-weighted benchmarks and increase portfolio risk.
The Nasdaq-100 Index is designed to measure the performance of
the 100 of the largest domestic and international non-financial
securities listed on The Nasdaq Stock Market based on market
capitalization. The NASDAQ Next Generation 100 Index™ is designed
to measure the performance of the next generation of Nasdaq-listed
non-financial companies; that is, the largest 100 securities
outside of the NASDAQ-100 Index®. The NASDAQ Next Generation 100
Index™ is designed to measure the performance of the next
generation of Nasdaq-listed non-financial companies; that is, the
largest 100 securities outside of the NASDAQ-100 Index®. An
investment cannot be made directly into an index.
About Risk:
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.
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.
Investments focused in a particular sector, such as information
technology and health care, are subject to greater risk, and are
more greatly impacted by market volatility, than more diversified
investments.
Stocks of small and mid-sized companies tend to be more
vulnerable to adverse developments, may be more volatile, and may
be illiquid or restricted as to resale.
The Fund's Underlying Index (Index) is composed of companies
with valuable portfolios of patents. The Index Provider relies on
an independent data provider to ascertain the potential value of an
issuer's patents and related intangible assets (i.e., intellectual
property and research & development activities) for inclusion
in the Index. The Fund's performance may suffer if the data
provider's does not correctly value an issuer's patents or if the
companies included in the Index ultimately do not benefit from
holding such patents. There is no guarantee that the Index will be
composed of companies with the most valuable patents.
Shares are not individually redeemable and owners of the Shares
may acquire those Shares from the Fund and tender those Shares for
redemption to the Fund in Creation Unit aggregations only,
typically consisting of 10,000 Shares.
Before investing, investors should carefully read the
prospectus/summary prospectus and carefully consider the investment
objectives, risks, charges and expenses. For this and more complete
information about the Fund call 800 983 0903 or visit invesco.com
for the prospectus/summary prospectus.
Invesco Distributors, Inc. is the US distributor for Invesco's
retail products, and is an indirect, wholly owned subsidiary of
Invesco Ltd.
The sponsor of the Invesco QQQ TrustSM, Series 1
(QQQ), 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 Nasdaq, Inc. and have been
licensed for use by Invesco. 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, Invesco NASDAQ Next Gen 100 ETF, and
Invesco NASDAQ Future Gen 200 ETF are not sponsored, endorsed, sold
or promoted by the Nasdaq, Inc. or its affiliates (Nasdaq, Inc.,
with its affiliates, are referred to as the "Corporations"). The
Corporations have no liability in connection with the
administration, marketing or trading of Invesco NASDAQ 100 ETF,
Invesco NASDAQ Next Gen 100 ETF, and Invesco NASDAQ Future Gen 200
ETF.
Contact: Stephanie Diiorio,
stephanie.diiorio@invesco.com 212.278.9037
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SOURCE Invesco Ltd.