Invesco’s newest “QQQ Innovation” ETFs hit $1bn in assets

Jan 14th, 2021 | By | Category: Equities

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Invesco has announced that its recently introduced Invesco Nasdaq 100 ETF (QQQM US) and Invesco Nasdaq Next Gen 100 ETF (QQQJ US) have collectively gathered $1 billion in assets under management.

Invesco's latest 'QQQ Innovation Suite' ETFs hit $1bn in assets

John Hoffman, Americas Head, ETFs & Indexed Strategies, Invesco.

The landmark has been achieved just three months after the funds made their debut on Nasdaq Stock Market.

The ETFs form part of what Invesco calls the “QQQ Innovation Suite”. The suite offers investors a variety of investment structures and exposures that access the Nasdaq-100 and Nasdaq Next Generation 100 indices.

QQQM offers investors access to the companies that constitute the Nasdaq-100 index, the 100 largest non-financial companies listed on the Nasdaq, at 5 basis point less than its bigger and more liquid brother Invesco QQQ ETF (QQQ US).

QQQM is essentially pitched at smaller, cost-conscious investors with longer-term, buy-and-hold investment approaches, i.e. the sorts of investors who do not require the prodigious capacity and intraday liquidity offered by QQQ.

The Invesco Nasdaq Next Gen 100 ETF provides access to the next 100 non-financial companies listed on Nasdaq, outside of the Nasdaq-100. It thus offers a mid-cap alternative to the large-cap Nasdaq-100.

Similar to the Nasdaq-100, the index is heavily focused on TMT stocks with a weight of 42.8% in information technology and 14.3% in communication services. The index is, however, far less concentrated at the individual security level – the largest constituent has a weight of just 2.75% in contrast to the Nasdaq-100 where the largest five constituents (Apple, Microsoft, Amazon, Alphabet, and Tesla) account for a thumping 40%.

Both funds have total expense ratios of 0.15%.

Commenting on the development, John Hoffman, Americas Head, ETFs & Indexed Strategies, Invesco, said: “The Invesco QQQ Innovation Suite was launched to provide clients with more ways to access the growth fuelled by the innovative companies listed on the Nasdaq stock exchange. We are pleased to see that the strong performance of the QQQM and QQQJ ETFs has resonated with investors and generated solid demand that allowed us to hit a $1 billion AUM milestone in just three months.”

He added: “Companies included in the Nasdaq-100 Index have historically shown a consistent commitment to reinvesting back into their business through research & development, often reinvesting a greater proportion of their sales to develop new technology that capitalizes on transformative, long-term themes in the marketplace. Perhaps this is the reason why many of the positive technology-enabled solutions and medical advancements during the current crisis have been generated by companies included in the Nasdaq Indexes. Innovation has never been so important than at this period in time.”

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