New offerings position Invesco as the provider with the most
expansive set of ETF assets that access unique exposures of the
groundbreaking companies within Nasdaq Indexes
ATLANTA, Dec. 4, 2024
/PRNewswire/ -- Invesco Ltd. (NYSE: IVZ), a leading global asset
management firm, announced today the expansion of the Invesco QQQ
Innovation Suite to include Invesco Top QQQ ETF (QBIG) and
Invesco QQQ Low Volatility ETF (QQLV). The newest additions to the
firm's popular family of QQQ strategies further positions the
Invesco QQQ Innovation Suite as the most expansive set of ETFs, by
assets under management (AUM)1, to offer unique and
varied exposures to the innovative companies in the Nasdaq-100
Index®.
"We're excited that the longstanding partnership between Nasdaq
and Invesco continues to result in the launch of unique, innovative
ETFs, positioning Invesco as the leading provider of Nasdaq-100
ETFs1," says Brian
Hartigan, Invesco's Global Head of ETFs & Index
Investments. "QBIG and QQLV will offer investors additional ways to
access to the Nasdaq Indexes that meet their desired investment
outcomes. These ETFs further advance the Invesco QQQ Innovation
Suite as a 'one stop shop' for innovation that offers investors a
range of differentiated ETFs."
The ETFs offer different exposures to the Nasdaq-100 Index,
giving investors an opportunity to either access high beta or low
beta versions of the Nasdaq-100 Index and providing options for
both potential greater upside capture or potential downside
mitigation. The two strategies consider the ever-changing economic
landscape by giving shareholders two unique exposures to
forward-thinking companies within the Nasdaq-100 Index.
QBIG is an actively managed ETF that uses a rules-based approach
to track the Nasdaq-100 Mega™ Index®, which
captures the top 45% of companies in the Nasdaq-100 Index. Invesco
believes this approach is the most effective way to gain targeted
exposure to innovation through high growth, mega-cap companies.
Focusing on the top 45%, rather than specific named companies or a
specific number of companies such as the "Magnificent
72," or previously, "FANMAG3" and
"FAANG4", allows QBIG to be prepared for any potential
shifts that may occur in the mega-cap landscape. QBIG's methodology
adjusts on a quarterly basis for the inevitable and continuously
evolving fluctuations in the composition of the largest companies
in the Nasdaq-100 Index over a longer time horizon.
QQLV is the first ETF in the Invesco QQQ Innovation Suite to
offer exposure to low volatility companies in the Nasdaq-100 Index.
The passively managed fund tracks the Nasdaq-100 Low Volatility™
Index®, which identifies the least volatile
companies over the trailing 12 months within the Nasdaq-100 Index,
offering investors access to growth companies within the Nasdaq-100
Index determined to have lower volatility.
"Invesco and Nasdaq have been breaking new ground together for
years, and we are excited to partner on two new additions to the
Invesco QQQ Innovation Suite," said Emily
Spurling, Senior Vice President and Head of Global Index at
Nasdaq. "For nearly 40 years, our flagship Nasdaq-100 Index has
been the benchmark for innovation, and we are pleased Invesco can
offer investors access to the concentrated companies in the
Nasdaq-100 Mega Index and low volatility factor captured by the
Nasdaq-100 Low Volatility Index."
With the launch of QBIG and QQLV, investors now have a robust
suite of ETFs that access different exposures and strategies of the
Nasdaq Indexes. QQLV offers exposure to the Nasdaq-100
Index® in a more conservative style, and
could complement QBIG by offering an opportunity to invest in both
ends of the Nasdaq-100 Index beta spectrum. QQLV also offers
juxtaposition to the concentration risk of holding the largest
mega-cap companies of the Nasdaq-100 Index.
About Invesco Ltd.
Invesco Ltd. 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$1.8 trillion in assets on behalf of clients
worldwide as of Sept. 30, 2024. For
more information, visit www.invesco.com.
1 The assets under management for the Invesco QQQ
Innovation Suite, which includes the funds QQQ, QQQM, QQA and QQMG,
has an AUM of US$ 326,086,258,058 as
of 10/31/24 – the highest AUM of any
provider tracking the Nasdaq-100 Index®
2 The "Magnificent Seven" stocks are a group of
high-performing and influential companies in the U.S. stock market:
Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA, and Tesla.
3 "FAANG" is an acronym that refers to the stocks of
five prominent American technology companies: Meta (formerly known
as Facebook), Amazon, Apple, Netflix; and Alphabet (formerly known
as Google).
4 FANMAG is an acronym that refers to Meta (formerly
known as Facebook), Amazon, Netflix, Microsoft, Apple, and Alphabet
(formerly known as Google).).
Important Information:
Invesco Distributors, Inc. is not affiliated with Nasdaq.
Basis points, as known as bps, are a unit of measurement. One
basis point is equivalent to 0.01% or 0.0001 in decimal form.
The Nasdaq-100 Index® is composed of the 100 largest
domestic and international non-financial securities listed on The
Nasdaq Stock Market® based on market capitalization.
The Nasdaq-100 Mega™ Index is designed to target the performance
of approximately the Top 45% cumulative weight of the Nasdaq-100
Index® (NDX®).
The Nasdaq-100 Low Volatility™ Index is designed to track the
performance of the bottom quartile of the Nasdaq-100 Index®
(NDX®) based on 12-month realized volatility. An
investment cannot be made directly into an index.
About Risk:
There are risks involved with investing in ETFs, including
possible loss of money. Index-based ETFs are not actively managed.
Actively managed ETFs do not necessarily seek to replicate the
performance of a specified index. Both index-based and actively
managed ETFs are subject to risks similar to stocks, including
those related to short selling and margin maintenance. Ordinary
brokerage commissions apply. The Fund's return may not match the
return of the 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.
In general, equity values fluctuate, sometimes widely, in
response to activities specific to the company as well as general
market, economic and political conditions.
QQLV
Investments focused in a particular sector are subject to
greater risk and are more greatly impacted by market volatility
than more diversified investments.
There is no assurance that the Fund will provide low
volatility.
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.
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.
QBIG
Market Risk. Securities held by the Fund are subject to market
fluctuations. You should anticipate that the value of the Shares
will decline, more or less, in correlation with any decline in
value of the securities in the Fund's portfolio. Additionally,
natural or environmental disasters, widespread disease or other
public health issues, war, military conflicts, acts of terrorism,
economic crises or other events could result in increased premiums
or discounts to the Fund's net asset value ("NAV").
Management Risk. The Fund is subject to management risk because
a portion of its assets are actively managed. In managing certain
of the Fund's investment sleeves and other portfolio holdings, the
Adviser applies investment techniques and risk analyses in making
investment and asset allocation decisions for the Fund, but there
can be no guarantee that these actions will produce the desired
results.
Index Risk. While a portion of the Fund's portfolio is actively
managed, another portion of the Fund's portfolio is designed to
track the performance of the Index. In managing this portion of the
Fund's portfolio, the portfolio managers will not generally buy or
sell a security unless that security is added or removed,
respectively, from the Index, regardless of the performance of that
security. If a specific security is removed from the Index, the
Fund may be forced to sell such security at an inopportune time or
for a price lower than the security's current market value. The
Index may not contain the appropriate mix of securities for any
particular economic cycle.
Equity Risk. In general, equity values fluctuate, sometimes
widely, in response to activities specific to the company as well
as general market, economic and political conditions.
Swap Agreements Risk. Swaps involve greater risks than direct
investments. Swaps are subject to leveraging, liquidity and
counterparty risks, and therefore may be difficult to value.
Adverse changes in the value or level of the swap can result in
gains or losses that are substantially greater than invested, with
the potential for unlimited loss.
Industry Concentration Risk. Investments focused in a particular
industry are subject to greater risk, and are more greatly impacted
by market volatility, than more diversified investments.
Technology Industry Risk. 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.
Derivatives Risk. 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.
Futures Contracts Risk. Risks of futures contracts include: an
imperfect correlation between the value of the futures contract and
the underlying commodity; possible lack of a liquid secondary
market; inability to close a futures contract when desired; losses
due to unanticipated market movements; obligation for the Fund to
make daily cash payments to maintain its required margin; failure
to close a position may result in the Fund receiving an illiquid
commodity; and unfavorable execution prices.
Counterparty Risk. Counterparty risk is the risk that the other
party to the contract will not fulfill its contractual obligations,
which may cause losses or additional costs.
Leverage Risk. Leverage created from borrowing or certain types
of transactions or instruments may impair the fund's liquidity,
cause it to liquidate positions at an unfavorable time or lose more
than it invested, increase volatility or otherwise not achieve its
intended objective.
Cash/Cash Equivalent Risk. To the extent the Fund holds cash or
cash equivalents rather than securities or other instruments in
which it primarily invests, the Fund risks losing opportunities to
participate in market appreciation and may experience potentially
lower returns.
Collateral Securities Risk. Collateral may include obligations
issued or guaranteed by the U.S. government, its agencies and
instrumentalities, including bills, notes and bonds issued by the
U.S. Treasury, money market funds and corporate debt securities,
such as commercial paper. Although the Fund may hold securities
that carry U.S. government guarantees, these guarantees do not
extend to shares of the Fund. Money market funds are subject to
management fees and other expenses. Therefore, investments in money
market funds will cause the Fund to bear indirectly a proportional
share of the fees and costs of the money market funds in which it
invests. At the same time, the Fund will continue to pay its own
management fees and expenses with respect to all of its assets,
including any portion invested in the shares of the money market
fund. It is possible to lose money by investing in money market
funds. Corporate debt securities such as commercial paper generally
are short-term unsecured promissory notes issued by businesses.
Corporate debt may be rated investment-grade or below
investment-grade and may carry variable, or floating, rates of
interest. Corporate debt securities carry both credit risk and
interest rate risk. Credit risk is the risk that the Fund could
lose money if the issuer of a corporate debt security is unable to
pay interest or repay principal when it is due. Some corporate debt
securities that are rated below investment-grade generally are
considered speculative because they present a greater risk of loss,
including default, than higher quality debt securities.
U.S. Government Obligations Risk. Obligations issued by US
Government agencies and instrumentalities may receive varying
levels of support from the government, which could affect the
fund's ability to recover should they default.
Interest Rate Risk. Interest rate risk refers to the risk that
bond prices generally fall as interest rates rise and vice
versa.
Portfolio Size Risk. The Fund typically will hold a small number
of positions. To the extent that a significant portion of the
Fund's total assets is invested in a limited number of holdings,
the appreciation or depreciation of any one position may have a
greater impact on the Fund's NAV than it would if the Fund held a
greater number of constituents.
Non-Diversified Fund Risk. The Fund is non-diversified and may
experience greater volatility than a more diversified
investment.
ADR Risk. American Depository Receipts (ADRs) may be subject to
certain of the risks associated with direct investments in the
securities of foreign companies. ADRs may not track the price of
the underlying securities on which they are based, and their value
may change materially at times when U.S. markets are not open for
trading.
Issuer-Specific Changes Risk. The value of an individual
security or particular type of security may be more volatile than
the market as a whole and may perform differently from the value of
the market as a whole.
Cash Transaction Risk. The Fund currently intends to effect
creations and redemptions principally for cash, rather than
principally in-kind because of the nature of the Fund's
investments. As such, investments in the Fund may be less tax
efficient than investments in ETFs that create and redeem
in-kind.
Market Trading Risk. The Fund is subject to numerous market
trading risks, including the potential lack of an active market,
losses from trading in secondary markets, and disruption in the
creation/redemption process. During stressed market conditions,
Shares may become less liquid as result of deteriorating liquidity
which could lead to differences in the market price and the
underlying value of those Shares.
Tax Risk. To qualify as a regulated investment company ("RIC"),
the Fund must meet a qualifying income test each taxable year.
Failure to comply with the test would have significant negative tax
consequences for shareholders. The Fund believes that income from
futures should be treated as qualifying income for purposes of this
test, thus qualifying the Fund as a RIC. If the IRS were to
determine that the Fund's income is derived from the futures did
not constitute qualifying income, the Fund likely would be required
to reduce its exposure to such investments in order to maintain its
RIC status.
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.
Nasdaq®, Nasdaq-100 Index®, Nasdaq-100
Mega™, Nasdaq-100 Low Volatility™, Nasdaq-100®,
NDX® and QQQ® are trademarks of Nasdaq,
Inc. (which with its affiliates is referred to as the
"Corporations") and are licensed for use by Invesco Distributors
Inc. The Product(s) have not been passed on by the Corporations as
to their legality or suitability. The Product(s) are not
issued, endorsed, sold, or promoted by the Corporations.
The Corporations make no warranties and bear no liability
with respect to the product(s).
NA3999500 11/24
Contact: Samantha Brandifino,
samantha.brandifino@invesco.com, 332 323-5557
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SOURCE Invesco Ltd.
