Invesco celebrates 25th anniversary of QQQ

Mar 13th, 2024 | By | Category: Equities

Invesco has celebrated the twenty-fifth anniversary of the launch of the Invesco QQQ, its giant Nasdaq 100 ETF and the flagship fund of the Invesco QQQ Innovation Suite.

Nasdaq 100 ETFs prepare for extraordinary rebalance

The Nasdaq 100 serves as the world’s pre-eminent benchmark for growth-oriented investing.

Introduced on 10 March 1999, QQQ has become the fifth-largest ETF globally, with approximately $250 billion in assets under management, and has one of the longest performance histories available in an ETF.

“We are proud of Invesco QQQ’s role, over its 25-year track record, in shaping how investors view and access many of the technological advancements driving daily life,” said Ryan McCormack, Senior Factor and Core Equity ETF Strategist at Invesco. “As a trailblazing product, Invesco QQQ has inspired a suite of potential solutions that allow investors to choose an investment in innovation that suits their personal financial goals.”

The underlying Nasdaq 100 Index consists of the largest 100 non-financial firms listed on Nasdaq. It is known for being ‘tech-heavy’ (its current allocation to technology stocks is 57.6%) but also includes communication services, industrial, retail, telecommunication, biotechnology, health care, transportation, media, and service companies.

“We’re thrilled to celebrate 25 years and the continued evolution of our strong partnership with Invesco,” added Emily Spurling, Senior Vice President and Head of Global Index at Nasdaq. “The underlying Nasdaq 100 is the world’s preeminent large-cap growth index, providing exposure to many of the world’s top brands that are investing in research and development to innovate and impact the future.”

The index maintains a relatively concentrated structure, with the top ten constituents representing a combined 46.7% of the total weight. This concentration prompted a special rebalancing in July of last year to mitigate overexposure to the largest components. Presently, key holdings include Microsoft (8.8%), Apple (8.1%), Nvidia (5.6%), Amazon (5.3%), Meta Platforms (5.0%), and Broadcom (4.5%).

Highlighting its popularity as a tactical tool for gaining quick and efficient access to US large-cap growth exposure, QQQ is the second-most traded ETF in the world based on average daily value traded. The fund enjoys robust liquidity with tight bid/ask spreads.

QQQ comes with an expense ratio of 0.20%.

The Invesco QQQ Innovation Suite also consists of the $23bn Invesco Nasdaq 100 ETF (QQQM US) which delivers more cost-effective access to the Nasdaq 100 with an expense ratio of 0.15%, although the fund lacks QQQ in terms of liquidity.

Tags: , , , , ,

Leave a Comment