Invesco QQQ Innovation Suite adds Invesco Top QQQ ETF (QBIG) and Invesco QQQ Low Volatility ETF (QQLV)

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Dec 04, 2024, 09:00 ET

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.

¹The 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®
²The "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).
⁴FANMAG 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 Trust^SM, 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).

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Contact: Samantha Brandifino, [email protected], 332 323-5557

SOURCE Invesco Ltd.