QQQ crosses $300 billion in assets

Key takeaways:

• Invesco QQQ recently became one of the very few ETFs to rise above $300 billion in assets.
• This latest milestone is a testament to investors’ confidence in QQQ to provide exposure to innovative companies.
• Some investors have used QQQ to participate in the growth of AI and other long-term trends.

Invesco QQQ ETF recently hit another milestone in its storied career: crossing $300 billion in assets.¹ This achievement underscores the ETF's continuing importance with investors and their trust in QQQ’s ability to provide efficient exposure to some of the world's most innovative companies.

The inception of the Invesco QQQ ETF dates back to March 1999, when it was launched with the aim of providing investors with an effective way to gain exposure to the Nasdaq-100® Index. This closely followed benchmark includes some of the largest non-financial companies listed on the Nasdaq, including leaders in technology, consumer services, and healthcare.

It’s a simple yet powerful idea. While past performance is no guarantee of future results, if you'd invested $10,000 in Invesco QQQ 10 years ago, your money would be worth $53,586 as of September 30, 2024.²

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.

Nasdaq-100: An engine of growth

The Nasdaq-100 Index is a powerhouse of innovation, with tech-focused giants like Apple, Microsoft, Amazon, Tesla, and Alphabet among its top holdings. Much of QQQ's allure lies in its ability to offer exposure to innovative and high-growth companies, combined with the benefits of the ETF structure.

Although technology is its largest sector by portfolio weight, QQQ can provide diversification across other sectors such as consumer discretionary and healthcare. This diversification helps mitigate risks while seeking to capitalize on the growth potential of various industries.

As of October 18, 2024, QQQ is the fifth-largest ETF listed in the US based on AUM.³ Aside from the rise of the Nasdaq-100 itself, here are some other trends that have helped drive QQQ’s growth in assets over the years:

• Investors seeking exposure to companies positioned to benefit from the potential growth of innovative fields, such as artificial intelligence (AI) and robotics
• The popularity of lower-cost passive strategies that provide exposure to an index
• A growing preference for the ETF wrapper due to its tax efficiency and convenience

Part of the investment landscape

Marking its 25^th anniversary in 2024, QQQ’s track record of outperformance—cumulative returns of 1025.24% since inception compared with 619.33% for the S&P 500® Index, as of September 30, 2024, further solidifies its position as a key player in the investment landscape​.⁴

Looking ahead, reaching $300 billion in assets is a testament to investor confidence in QQQ's ability to provide efficient exposure to trailblazing companies changing the world today and tomorrow.