![QQQ-image](/content/dam/invesco/us-etf/en/innovation-suite-ticker-card-blue-BG-qqq.png)
Large-Cap
Invesco QQQ ETF
At the core of a portfolio, most investors want investment strategies with three key attributes:
The Invesco portfolios that provide access to the NASDAQ-100 Index can potentially meet each of these criteria. The NASDAQ-100 are the 100 largest non-financial companies, ranked by market capitalization that are listed on the Nasdaq. The Invesco funds that provide access to this index are the Invesco QQQ ETF (ticker QQQ), the Invesco NASDAQ 100 ETF (ticker QQQM), and the mutual fund, Invesco NASDAQ 100 Index Fund (ticker IVNQX R6 Shares).
Since the Invesco QQQ ETF was introduced in 1999, the NASDAQ-100 has significantly outperformed two other indexes of large-capitalization stocks – the S&P 500 Index and Russell 1000 Growth Index. It’s important to remember that this is a period spanning significant episodes of market volatility – including the dot.com collapse of the early 2000s, the Global Financial Crisis in 2008-2009, and the market volatility experienced during the early months of the global COVID-19 pandemic.
It’s a common misperception that the NASDAQ-100 is a technology index. While companies in the Information Technology sector do represent nearly half of the index, the NASDAQ-100 comprises other sectors as well – including the Communication Services, Consumer Discretionary, Health Care, Industrials and Utilities sectors.
For investors seeking long-term growth for their portfolios, finding companies with a commitment to innovation is essential. In an age when industries are continually disrupted by major breakthroughs, companies must remain innovative to survive and thrive. Many of the companies that have set the standard for innovation are in the NASDAQ-100.
A main reason so many of these companies are recognized as innovators may be that they spend more on research and development (R&D) than companies in the S&P 500 and Russell 1000 Growth Indexes, on average, do. That investigation into what comes next may be what has enabled so many of the NASDAQ-100 companies to keep pace with – and ahead of – the constant change reshaping every industry.
When considering investments for a portfolio’s core, investors and their advisors want a solid foundation that will enable them to diversify into investments with a range of risk and reward profiles. Investments that focus on companies with a strong record for innovation have the potential to provide that solid foundation.
YTD | 1-year | 3-year | 5-year | 10-year | |
---|---|---|---|---|---|
NASDAQ-100 | 31.65% | 48.75% | 97.00% | 188.76% | 540.97% |
Russell 1000 Growth | 24.33% | 37.53% | 80.14% | 149.87% | 391.18% |
S&P 500 Growth | 20.60% | 30.63% | 68.86% | 132.28% | 361.45% |
QQQ (NAV) | 31.49% | 48.47% | 95.82% | 185.72% | 528.09% |
QQQM and the Invesco Nasdaq 100 Index Fund are new funds, therefore they have no performance.
Past performance is not a guarantee of future results; current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. See invesco.com to find the most recent month-end performance numbers. Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times. Fund performance reflects fee waivers, absent which performance data quoted would have been lower. An investment cannot be made directly into an index. Index returns do not represent fund returns.
Diversification does not guarantee a profit or eliminate the risk of loss.
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About Risk:
ETFs:
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Underlying 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.
QQQM & QQQJ
The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.
The Fund is non-diversified and may experience greater volatility than a more diversified investment.
QQQJ
Stocks of medium-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale.
Invesco NASDAQ 100 Index Fund:
In general, stock values fluctuate, sometimes widely, in response to activities specific to the company as well as general market, economic and political conditions.
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.
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.
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.
The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.
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.
The NASDAQ-100 Index is comprised of 100 of the largest non-financial companies on the Nasdaq.
The NASDAQ Next Generation 100 Index is comprised of the next generation of non-financial companies on Nasdaq; that is, the largest 100 companies outside of the NASDAQ-100 Index.
The Russell 1000® Growth Index measures the performance of the largecap growth segment of the US equity universe.
An investor cannot invest directly in an index. The results assume that no cash was added to or assets withdrawn from an Index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.
The sponsor of the Nasdaq-100 TrustSM, 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 The Nasdaq Stock Market, Inc. and have been licensed for use by Invesco, QQQ's sponsor. 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.
The Invesco NASDAQ 100 ETF is not sponsored, endorsed, sold or promoted by the NASDAQ OMX Group, Inc. or its affiliates (NASDAQ OMX, with its affiliates, are referred to as the "Corporations"). The Corporations have no liability in connection with the administration, marketing or trading of the Invesco NASDAQ QQQ ETF. "NASDAQ®" is a registered trademark and is used under license.
The Invesco NASDAQ Next Gen 100 ETF is not sponsored, endorsed, sold or promoted by the NASDAQ OMX Group, Inc. or its affiliates (NASDAQ OMX, with its affiliates, are referred to as the "Corporations"). The Corporations have no liability in connection with the administration, marketing or trading of the Invesco NASDAQ Next Gen 100 ETF. "NASDAQ®" is a registered trademark and is used under license.
The Invesco NASDAQ 100 Index Fund is not sponsored, endorsed, sold or promoted by the NASDAQ OMX Group, Inc. or its affiliates (NASDAQ OMX, with its affiliates, are referred to as the "Corporations"). The Corporations have no liability in connection with the administration, marketing or trading of the Invesco NASDAQ 100 Index Fund. "NASDAQ®" is a registered trademark and is used under license.
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