03.11.2019

QQQs Turn 20

Invesco Ltd.celebrates the 20th anniversary of Invesco QQQ, its top-performing large-cap growth ETF that tracks the innovative companies included in the NASDAQ-100 Index. Launched on March 10, 1999, QQQ offers investors access to global growth companies, excluding the securities of financial companies. QQQ is the sixth largest ETF listed in the US with $66 billion in assets under management[i] and has one of the longest performance histories available in an ETF.

“Invesco is proud of the 20 years of innovation that have been marshalled through the Invesco QQQ and the access it has provided investors to pioneering companies that impact each of us daily. Through products, such as QQQ, Invesco continues to focus on creating tools to help investors build portfolios that exceed expectations. We look forward to the next 20 years,” said Dan Draper, Managing Director, Global Head of Invesco ETFs.

By tracking the Nasdaq-100, QQQ can provide investors means to diversify their portfolio while still investing in the large-cap equity space. Despite its reputation as a technology fund, the current characteristics of QQQ position it as a large-cap growth fund, with only 42.6% of the holdings classified as technology companies.[ii]The Fund has evolved since its greatest technology weighting of 78% at the end of 2000, around the height of the tech bubble. Currently QQQ showcases underlying constituents that can be considered innovators in their respective sectors, including information technology, communication services, consumer discretionary, health care, consumer staples, industrials and utilities.

“When QQQ was launched in 1999, most investors were just learning about index-tracking investment products, and the transparency offered by an ETF was novel. It is interesting to look back 20 years later at how relevant and well-regarded the Invesco QQQ remains, even as much of the ETF landscape has changed,” explained Draper.

Bjorn Sibbern, EVP and Head of Nasdaq’s Global Information Services added, “The resilience of the Invesco QQQ is a testament to the strength not only of Nasdaq’s global indexes, but the indexing industry as a whole.”

QQQ Highlights

  • QQQ ranks as the 6th largest ETF listed in the US with $66 billion in total AUM.[iii]
  • The bid/ask spread on average over the past year was 0.65 basis points making QQQ the 2nd cheapest of all ETFs with a total expense ratio of 0.20%, respectively.[iv]
  • #1 in Lipper’s Large-Cap Growth Category for the past five years, as of Dec. 31, 2018.
  • Top 1% ranking in the Morningstar’s Large Growth category for the past five and 10 years, as of Dec. 31, 2018.[vi]
  • 2nd most traded ETF in the US based on average daily volume traded, as of Dec. 31, 2018.[vii]
  • Morningstar 5-star overall rating, Large Growth Category, as of Dec. 31, 2018.[viii]

See QQQ Standardized Performance. Performance quoted is past performance and cannot be a guarantee of comparable future results; current performance may be higher or lower. Investment returns and principal value will vary; you may have a gain or loss when you sell shares. Fund performance is at NAV and reflects fee waivers, absent which, performance data quoted would have been lower. See invesco.com to find the most recent month-end performance numbers.

[i] From Bloomberg L.P., as of Dec. 31, 2108
[ii] From Bloomberg L.P. as of Jan. 31, 2019
[iii] From Bloomberg L.P , as of Dec. 31, 2018
[iv] For all U.S. listed ETFs, per Bloomberg on Dec. 31, 2018 and Jan. 31, 2019, respectively.
[v] Lipper fund percentile rankings are based on total returns, excluding sales charges and including fees and expenses, and are versus mutual funds, ETFs and funds of funds in the category tracked by Lipper. The Lipper one-year rank 43% (287 of 674), five-year rank 1% (1 of 536), 10-year rank 1% (2 of 408), 15-year rank 2% (3 of 294) as of Dec. 31, 2018.
[vi] The Morningstar one-year rank 28% (430 of 1405) and five-year rank 1% (2 of 1107) and ten-year rank 1% (6 of 799) as of Dec. 31, 2018. Rankings are based on total return, excluding sales charges and including fees and expenses versus all funds in the Morningstar category. Open-end mutual funds and exchange-traded funds are considered a single population for comparison purposes. Had fees not been waived and/or expenses reimbursed currently or in the past, the ranking would have been lower.
[vii] Source: Bloomberg L.P., as of Dec. 31, 2018.
[viii] As of Dec. 31, 2018, the Fund had an overall rating of 5 stars out of 1247 funds, 5 stars out of 1247 funds for the 3-year period, 5 stars out of 1107 funds for the 5-year period and 5 stars out of 799 funds for the 10-year period, respectively in the Large Growth Category. Ratings are based on a risk-adjusted return measure that accounts for variation in a fund’s monthly performance, placing more emphasis on downward variations and rewarding consistent performance. Ratings are calculated for funds with at least a three year history. The overall rating is derived from a weighted average of three-, five- and 10-year rating metrics, as applicable, excluding sales charges and including fees and expenses. ©2019 Morningstar Inc. All rights reserved. The information contained herein is proprietary to Morningstar and/or its content providers. It may not be copied or distributed and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance does not guarantee future results. The top 10% of funds in a category receive five stars, the next 22.5% four stars, the next 35% three stars, the next 22.5% two stars and the bottom 10% one star. Ratings are subject to change monthly. Had fees not been waived and/or expenses reimbursed currently or in the past, the Morningstar rating would have been lower. Ratings for other share classes may differ due to different performance characteristics.

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