#USA #Atlanta #Investment Management #Nasdaq-100 Index #Invesco QQQ

Invesco QQQ Transforms for the Modern Era

Invesco Ltd. (NYSE: IVZ), a well-respected leader in global asset management, has recently made a significant shift that could redefine the way its flagship fund operates. On December 19, 2025, shareholders of the Invesco QQQ Trust, Series 1, voted overwhelmingly in favor of proposals aimed at modernizing the fund. This transition involved restructuring from a unit investment trust ETF to an open-end fund ETF, along with a new governance framework that includes a board of trustees.

Shareholder Outcomes

The decision to move towards an open-end fund is expected to have immediate benefits for shareholders. Under the new structure, the total expense ratio of the fund will decrease from 0.20% to 0.18%, resulting in a 10% reduction in fees for investors. This change not only makes the fund more cost-effective but also allows for greater flexibility in management practices. For instance, Invesco QQQ can now reinvest income and engage in securities lending, enhancing potential returns for its investors. Importantly, this transformation will not have any tax implications for current shareholders.

Andrew Schlossberg, President and CEO of Invesco, expressed his gratitude towards the shareholders who backed the initiative. He stated, "We are proud to deliver a ten percent reduction in fees to QQQ investors while creating more flexibility to utilize tools that could deliver better outcomes for investors." This modernization is a significant milestone, showcasing Invesco's commitment to evolve and adapt to client demands.

Continued Index Tracking

Despite the structural changes, the Invesco QQQ will continue to track the Nasdaq-100 Index®, which comprises the 100 largest non-financial companies listed on the Nasdaq Stock Exchange. The modernization does not affect the existing licensing arrangements between Invesco and Nasdaq regarding the index, nor does it change the way the Nasdaq-100 Index® is administered.

Brian Hartigan, Global Head of ETFs and Index Investments at Invesco, emphasized the importance of this transformation, stating, "Today's landmark reclassification of Invesco QQQ, one of the largest and most recognizable ETFs in the world, provides investors with a more beneficial way to access the companies of the Nasdaq-100 Index®." This modern approach aligns with Invesco's vision to offer innovative investment solutions that go beyond merely performance metrics.

The Invesco QQQ Innovation Suite

The updated QQQ ETF remains a pivotal component of the Invesco QQQ Innovation Suite, renowned as one of the most comprehensive ranges of ETFs designed to provide diverse exposure to the Nasdaq-100 Index®. Launched in October 2020, this suite serves as a versatile platform for investors looking to customize their market exposure. The suite currently includes ten differentiated ETFs, helping investors tailor their strategies to meet varying objectives and preferences.

Conclusion

In summary, the transformation of the Invesco QQQ reflects a strategic initiative to enhance investor returns, reduce costs, and offer innovative solutions within an ever-evolving financial landscape. As the fund embarks on this new phase, it aims to remain responsive to the needs of its clients while ensuring that it continues to deliver excellence in asset management. The modernization marks not just a change in structure but a commitment to proactive evolution, setting the stage for future innovations in the ETF market.