Get to know QQQ: Charting 25 years of performance

For 25 years, many investors have relied on Invesco QQQ ETF as a proven way to get exposure to highly innovative companies. Relive some of QQQ’s major milestones over the years and how the ETF has played a core role in many investors’ portfolios.

1999: Launch

Invesco QQQ burst onto the investment scene in March 1999 with a simple yet powerful approach: tracking the Nasdaq-100 Index. This index, which launched in 1985, includes 100 of the largest non-financial companies listed on the Nasdaq Stock Market, spanning various sectors like technology, health care, and consumer discretionary. QQQ quickly gained traction as a way to gain exposure to some of the most dynamic companies in the world.

2000: $10 billion AUM

Shortly after its introduction, QQQ reached $10 billion in assets under management (AUM), highlighting its warm reception by investors.¹ What made QQQ particularly appealing was its broader exposure beyond just technology companies, making it a potential solution for investors seeking diversification beyond traditional sector-focused strategies. QQQ’s quick jump to $10 billion is notable because in 2000 the ETF market was still in its infancy.

2004: Moves listing from Amex to Nasdaq

In 2004, QQQ made a significant move from being listed on the American Stock Exchange (Amex) to the Nasdaq Stock Market. This transition aligned QQQ more closely with its underlying index, the Nasdaq-100. Nasdaq's reputation as the premier exchange for technology and growth companies further solidified QQQ's position as a vehicle for accessing innovation.

2007: New sponsorship; new name

In 2007, PowerShares assumed sponsorship of QQQ, leading to a name change to PowerShares QQQ Trust. Despite the new name, the core attributes of QQQ remained consistent: liquidity, transparency, a straightforward approach, and tax efficiency.² This transition marked another chapter in QQQ's journey, emphasizing its appeal to investors seeking exposure to cutting-edge technology and some of the world’s best-known brands.

2017: $50 billion AUM

QQQ reached $50 billion in AUM in 2017, more evidence of its popularity with investors.³ In a strong year for technology stocks, QQQ grew more than 30% in 2017—it’s AUM was $41.79 billion as of 12/31/2016 and $58.26 billion as of 12/31/2017—setting new all-time highs powered by innovative companies like Apple, Amazon, Microsoft, Facebook, and Alphabet.

2018: Name change to Invesco QQQ Trust

In 2018, QQQ underwent another name change to the Invesco QQQ Trust moniker that investors know today. The streamlined name helped investors identify QQQ as residing within the broader Invesco ETF ecosystem. Today, Invesco is one of the most established ETF providers with over 200 strategies spanning equity, fixed income, alternatives, commodities, currencies, and more.

2020: $100 billion AUM

Despite extreme market volatility due to the COVID-19 pandemic in 2020, QQQ crossed the $100 billion AUM milestone.⁴ In addition to a core long-term holding, investors recognized QQQ’s potential as a liquid vehicle for managing market exposure during turbulent times. As the second most traded ETF based on average daily volume traded within the U.S. as of December 31, 2023⁵, QQQ has long been considered one of the most liquid ETFs available to investors.

2024: 25 years of outperformance

As QQQ celebrates its 25th anniversary in March 2024, it is the fifth-largest ETF⁶—a testament to its long-standing relevance. Since inception, QQQ has a total cumulative return of 839.54% compared with 489.24% for the S&P 500.⁷ The consistent innovation and adaptability of QQQ’s holding companies have contributed to its success, making it a cornerstone of many investors' portfolios.

Standardized performance. Performance quoted is past performance and cannot guarantee of comparable future results; current performance may be higher or lower. Visit invesco.com/performance for the most recent month-end performance. Investment returns and principal value will vary; you may have a gain or loss when you sell shares. Fund performance reflects fee waivers, absent which, performance data quoted would have been lower. Invesco QQQ’s total expense ratio is 0.20%. Index performance does not represent fund performance. Please keep in mind that high, double-digit and/or triple-digit returns are highly unusual and cannot be sustained.

Here’s to another 25 years

As we reflect on this 25-year journey, it's clear that QQQ has evolved from a trailblazing ETF to become a key player in the investment landscape that many investors know and trust. In particular, QQQ’s ability to provide exposure to dynamic and innovative companies has made it a very helpful tool for investors seeking growth. At Invesco, we’re looking ahead to rethinking what’s possible and another 25 years of investing in innovation.