Invesco Canada to trim fee on Nasdaq 100 ETF

May 6th, 2021 | By | Category: ETF and Index News

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Invesco Canada has announced it will trim the management fee charged on its Invesco QQQ Index ETF (QQC.F CN) from 0.25% to 0.20%, effective 14 May.

Invesco Canada to trim fee on Nasdaq 100 ETF

Invesco Canada to trim fee on Nasdaq 100 ETF

The fund, which is listed on Toronto Stock Exchange and houses C$400 million ($330m) in assets, provides exposure to the innovative growth stocks that make up the Nasdaq 100 Index.

The Nasdaq 100 consists of 100 of the largest US and international non-financial companies by market capitalization listed on the Nasdaq Stock Market, subject to various diversification requirements.

The index reflects companies across major industry groups including computer hardware and software, communications, retail/wholesale trade, and biotechnology.

The index is known for being ‘tech-heavy’ with roughly half (48.1%) of the current weight allocated to information technology stocks, while the majority of the remaining exposure is dedicated to the communication services (19.1%) and consumer discretionary (18.2%) sectors.

The index’s top positions currently include Apple (11.0%), Microsoft (9.5%), Amazon.com (8.3%), Alphabet (6.9%), Tesla (4.2%), Facebook (3.8%), Nvidia (2.7%), Paypal (2.3%), and Intel (2.1%).

The ETF has, historically, achieved its exposure by investing directly in Invesco’s giant US-listed Nasdaq 100 ETF, the $160 billion Invesco QQQ (QQQ US).

Moving forward, however, Invesco has announced that the fund will invest in QQQ as well as the Invesco Nasdaq 100 ETF (QQQM US) which was launched in October of last year. QQQM is essentially identical to QQQ except that it comes with a lower expense ratio of 0.15% (vs. 0.20%) and is so aimed at more cost-conscious retail investors.

To reflect this change in investment approach, the Canada-listed Invesco QQQ Index ETF will be renamed the Invesco NASDAQ 100 Index ETF

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