Innovation Suite solutions
Invesco and Nasdaq are pioneers in innovative solutions, partnering together to help people access the world’s most groundbreaking companies in pursuit of their financial goals.
Ticker: QQQS
Invesco Nasdaq Future Gen 200 ETF
Explore the potential benefits of investing in small-cap stocks with promising patent portfolios by allocating to QQQS.
Why invest in QQQS?
QQQS unlocks a new way to invest in innovation by partnering with Nasdaq and IPR Strategies to assess small-cap companies' patent portfolios (e.g., intellectual property). By investing in QQQS, investors can benefit from:
Growth potential
QQQS provides access to small-cap companies with promising patent portfolios. Valuable patents may be an indicator of competitive advantages and potential future revenue growth.
Data-based approach
Access to a proprietary patent value methodology that analyzes data to identify the 200 most innovative small-cap companies based on patent portfolio value.
Diversification
Small-cap growth investors have an opportunity to add exposure to innovative companies across a variety of sectors with no overlap between existing Invesco Innovation Suite strategies.
Video with Ryan McCormack
Transcript: Explore key features of QQQS
Hi, I’m Ryan McCormack, Factor and Core Equity Strategist here at Invesco. I’m excited to introduce you to our latest exchange-traded fund, the Invesco Nasdaq Future Gen 200 ETF, ticker QQQS.
QQQS is an exchange-traded fund that provides exposure to 200 of the most innovative small-cap companies relative to their patent portfolio value. This strategy uses a proprietary methodology to find and value attractive patents and intellectual property relative to market capitalization.
From a portfolio construction standpoint, now you can use QQQS for small-cap growth exposure to complete an investing approach in innovation across the market-cap spectrum. In portfolios, QQQS is designed to complement both the Invesco QQQ ETF (ticker: QQQ) and the Invesco NASDAQ 100 ETF (ticker: QQQM) for large-cap, and the Invesco NASDAQ Next Gen 100 ETF (ticker: QQQJ) for mid-cap, ensuring zero overlap between strategies.
Let’s explore some of the key features of QQQS:
1) What is a patent value and why is it important to a company’s growth potential?
A patent is an exclusive right granted to a company to be the sole producer, user, and seller of a specific invention. In general, patents can give companies competitive advantages and ultimately can help drive future revenue and growth. QQQS provides exposure to these companies pursuing and holding attractive patents.
2) What is the methodology behind QQQS?
Patent evaluation can be done in different ways and involves access to a variety of data sources and detailed analysis. The underlying index of QQQS, the Nasdaq Innovators Completion Cap Index, uses a tested, proprietary methodology to value patents across multiple sectors to find the most innovative small-cap companies. It focuses on measuring intellectual property values and identifies those with potentially undervalued patent portfolios. With QQQS, investors are exposed to 200 of the most innovative small-cap companies with strong patent portfolios relative to market cap which can be an early indicator of growth potential.
3) How can investors implement QQQS in my portfolio?
We believe there are three important ways investors can incorporate QQQS into their portfolios:
First, QQQS is a way to gain exposure to innovative companies with valuable patents that may be an indicator of competitive advantages and future revenue growth, representing a potential “innovation premium”.
Second, investors can use QQQS on its own for their small-cap equity allocations.
Finally, QQQS can be used to complement the existing Innovation Suite ETFs at Invesco to capture the full market-cap exposure of innovative companies.
QQQS is the latest example of Invesco’s commitment to helping investors invest in innovation with transparent and easy-to-access ETFs.
For more information visit Invesco.com/qqqs or reach out to an Invesco representative to learn more.
Important Information:
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.
The Fund is non-diversified and may experience greater volatility than a more diversified investment.
The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.
Investments focused in a particular sector, such as information technology and health care, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
Shares are not individually redeemable and owners of the Shares may acquire those Shares from the Fund and tender those Shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 10,000, 20,000, 25,000, 50,000, 75,000, 80,000, 100,000, 150,000 or 200,000 Shares.
This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.
Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the Fund call 800 983 0903 or visit invesco.com for the prospectus/summary prospectus.
Invesco Distributors, Inc. 10/22 NA2385165
Explore key features of QQQS
QQQS product strategist Ryan McCormack dives into what you need to know about the fund.
Time to watch: 3:39
FAQ
A patent is an exclusive right granted for an invention, which could be a product or a process that provides a new way of doing something or offers a new technical solution to a problem. To get a patent, technical information about the invention must be disclosed to the public in a patent application.
Determining patent value is based on multiple parameters and not all patents are equally valuable. Some key factors include the length of time remaining for sole ownership of the patent, the jurisdiction where it was filed, the usefulness of the patented invention or design, and many more characteristics. It might be helpful to think about the complex process of valuing patents as similar to determining the value of real estate, which depends on multiple factors such as location, square footage, age, condition, and the local market.
In general, patents can give companies competitive advantages and ultimately help drive future revenue and growth. QQQS provides exposure to these companies pursuing and holding attractive patents.
Patents can be an early indicator of innovation because they are applied in the very early stages of research and development (R&D) expenses to protect inventions from being copied. While R&D may represent a company's cost for an invention, a patent represents future value. Patent value is not included in a company’s assets on the balance sheet (book value) from an accounting perspective, but patents could still be valuable to drive potential future growth.
Small-cap investing may give investors the opportunity to participate in the growth of emerging companies with significant upside potential. Although small-cap stocks have certain risks, investing in smaller companies may let investors participate in future growth as they mature into larger companies. In the case of QQQS, stocks in the Nasdaq Completion Cap Innovators Index (NCX) may “graduate” to the Nasdaq-100 Index (NDX) due to growth in market capitalization.
A small-cap stock is generally a company with market capitalization between $300 million and $2 billion. A company’s market capitalization is determined by multiplying the total number of shares outstanding by the current stock price.
QQQS seeks to track the investment results (before fees and expenses) of the Nasdaq Completion Cap Innovators Index, which is comprised of small-cap Nasdaq-listed companies not included in the Nasdaq-100 Index. The index methodology is designed to select innovative companies based on estimated patent value.
QQQS can be used as a small-cap core holding that focuses on firms with growth potential as measured by the value of their patents. QQQS can also be used to complement other ETFs in the Invesco QQQ Innovation Suite such as Invesco QQQ (QQQ), Invesco Nasdaq 100 ETF (QQQM), and Invesco Nasdaq Next Gen 100 ETF (QQQJ). Now, investors can get ETF exposure to some of the world’s most innovative companies across the market-cap spectrum with no overlap between strategies.
Learn more about our innovation ETFs
QQQS is a part of our broader product suite that provides investors access to today's most innovative companies.
QQQS outshined the competition
etf.com awarded QQQS the distinction of being the best new smart beta ETF for 2023
The award was based on selecting the most important smart beta or factor ETF launched in 2022 out of 35 ETFs, regardless of asset class, that uses a quantitative, research-driven approach to attempt to deliver superior long-term risk-adjusted returns, per etf.com.
