Invesco QQQ Shareholders Vote to Approve Modernization

Rhea-AI Summary

Invesco (NYSE: IVZ) announced that shareholders approved modernizing Invesco QQQ Trust, Series 1 by converting it from a unit investment trust ETF to an open-end fund ETF and adopting a board of trustees.

QQQ is expected to begin trading as an open-end fund on December 22, 2025. The conversion lowers the fund's total expense ratio from 0.20% to 0.18 (a 10% fee reduction), allows reinvestment of income and participation in securities lending, and carries no tax implications for investors.

Positive

• Expense ratio cut from 0.20% to 0.18 (10% reduction)
• Conversion effective Dec 22, 2025 to open-end fund structure
• Reinvestment of income enabled after conversion
• Securities lending capability introduced for potential incremental revenue
• Invesco QQQ Innovation Suite AUM US$474,696,043,744 as of 11/30/2025

Negative

• None.

Key Figures

Fee reduction 10% Reduction in investor fees for Invesco QQQ

Old expense ratio 0.20% Invesco QQQ total expense ratio before modernization

New expense ratio 0.18% Invesco QQQ total expense ratio after conversion

Fund age 26 years Tenure of Invesco QQQ at time of modernization

Index constituents 100 companies Non-financial companies in the Nasdaq-100 Index tracked by QQQ

Innovation Suite AUM US$ 474,696,043,744 AUM of Invesco QQQ Innovation Suite as of 11/30/25

Innovation Suite ETFs 10 ETFs Number of differentiated ETFs in the Invesco QQQ Innovation Suite

Trading date December 22 Expected first trading day as open-end fund ETF

Market Reality Check

$27.09 Last Close

Volume Volume 4,485,356 vs 20-day average 5,441,583 ahead of this announcement normal

Technical Trading above 200-day MA of 19.22 with price at 26.48

Peers on Argus

IVZ showed a modest 0.3% gain while key asset-management peers like BEN (-1.48%), EQH (-1.4%) and TROW (-1.16%) were down, indicating a more stock-specific tone versus the group.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 15	Crypto ETP launch	Positive	-0.8%	Launch of Invesco Galaxy Solana ETP providing spot Solana exposure.
Dec 09	AUM update	Neutral	+2.8%	Preliminary November 2025 AUM and flow metrics disclosure.
Dec 08	Private markets partnership	Positive	-1.6%	Strategic partnership with LGT to expand private markets access.
Dec 03	Conference participation	Neutral	+3.4%	Management fireside chat at Goldman Sachs financial services conference.
Dec 03	Investment outlook release	Positive	+0.6%	Publication of 2026 investment outlook with key asset-allocation themes.

Pattern Detected

Recent news often drew mixed reactions, with several seemingly positive strategic updates followed by negative price moves, indicating no consistent pattern of response.

Recent Company History

Over the last few months, Invesco reported stronger Q3 2025 results with higher operating revenues and EPS, active capital management, and significant AUM of over $2 trillion. It also filed multiple 8-K updates on monthly AUM and executed a preferred share repurchase agreement of $500 million. Strategically, Invesco launched a Solana ETP and a private-markets partnership with LGT. Against this backdrop, the QQQ modernization and fee reduction further emphasize product competitiveness and ETF positioning within the firm’s broader platform.

Market Pulse Summary

This announcement details a structural modernization of Invesco QQQ, shifting from a unit investment trust to an open-end ETF, cutting the expense ratio from 0.20% to 0.18% and enabling income reinvestment and securities lending. QQQ continues to track the Nasdaq-100 Index, and remains central to the Invesco QQQ Innovation Suite with AUM of US$ 474,696,043,744. Investors may watch how these changes influence net flows, competitive positioning, and ETF profitability within Invesco’s broader platform.

Key Terms

unit investment trust financial

"restructuring it from a unit investment trust ETF to an open-end fund ETF"

A unit investment trust (UIT) is a pooled investment that sells investors fixed blocks, or “units,” representing an unchanging basket of securities assembled for a set period. Think of it as a pre-packed grocery box you buy that contains specific stocks or bonds and won’t be swapped out by a manager; this matters to investors because it offers predictable holdings and costs but limited flexibility and a defined time horizon for returns and income.

open-end fund financial

"restructuring it from a unit investment trust ETF to an open-end fund ETF"

An open-end fund is a pooled investment vehicle that continuously issues and redeems shares at a price based on the fund’s per-share value (net asset value), so investors can buy or sell shares directly from the fund on demand. For investors this matters because the fund offers everyday liquidity and its size can change with cash flows, which affects portfolio management, trading costs and potentially returns — like a shop that adjusts stock levels as customers come and go.

etf financial

"one of the largest and most recognizable ETFs in the world1"

An ETF, or exchange-traded fund, is like a basket of different investments such as stocks or bonds that you can buy or sell easily on the stock market, just like a regular share. It allows people to invest in many companies at once, making it a simple way to grow savings without picking individual stocks.

securities lending financial

"provides the opportunity for Invesco QQQ to reinvest income and participate in securities lending"

Securities lending is when an owner of stocks or bonds temporarily loans them to another party, usually so the borrower can sell them short or meet settlement needs; the lender receives a fee and typically some form of security in return. Investors should care because lending can generate extra income on holdings and affects market liquidity and short-selling activity, much like renting out a spare room brings income while someone else uses the space.

nasdaq-100 index financial

"QQQ will continue to track the Nasdaq-100 Index®, the 100 largest non-financial companies"

A stock market index made up of the 100 largest non-financial companies listed on the Nasdaq exchange, ranked by the total value of their publicly traded shares. Think of it as a single basket or scoreboard that tracks how a group of prominent, mostly tech- and growth-oriented firms are performing together; investors use it as a benchmark to gauge market trends, build funds or ETFs, and get broad exposure to large-cap Nasdaq-listed stocks.

assets under management financial

"The assets under management for the Invesco QQQ Innovation Suite ... is US$ 474,696,043,744"

Assets under management (AUM) is the total value of all the investments that a financial company or fund is responsible for overseeing on behalf of its clients. It’s like a big bucket that shows how much money the firm is managing for people or organizations. A higher AUM often indicates a larger, more trusted company, and it can influence how much money they earn and the services they can offer.

AI-generated analysis. Not financial advice.

Historical change to the structure of Invesco QQQ reduces investor fees by 10% and marks a new era for the 26-year-old fund

ATLANTA, Dec. 19, 2025 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ), a leading global asset management firm announced today that shareholders in Invesco QQQ Trust, Series 1, voted to approve proposals to modernize Invesco QQQ, restructuring it from a unit investment trust ETF to an open-end fund ETF, and changing its governance structure to a board of trustees. Invesco expects QQQ to begin trading as an open-end fund on Monday, December 22.

As part of this conversion, shareholders of Invesco QQQ will benefit from a decrease in the fund's total expense ratio from 0.20% to 0.18%. The reclassification also provides the opportunity for Invesco QQQ to reinvest income and participate in securities lending. There will be no tax implications from this conversion for QQQ investors.

"I want to thank the shareholders who voted to transform Invesco QQQ into a modern ETF format. 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," said Andrew Schlossberg, President and CEO of Invesco. "This is an important milestone that demonstrates our intention to deliver continuous product excellence and respond to the needs of our clients."

QQQ will continue to track the Nasdaq-100 Index^®, the 100 largest non-financial companies listed on the Nasdaq Stock Exchange. QQQ modernization does not alter the terms of Nasdaq's licensing arrangements with Invesco nor the administration of the Nasdaq-100 Index^®. 

"Today's landmark reclassification of Invesco QQQ, one of the largest and most recognizable ETFs in the world¹, provides investors with a more beneficial way to access the companies of the Nasdaq-100 Index^®," said Brian Hartigan, Global Head of ETFs and Index Investments, Invesco. "This aligns with Invesco's goal to offer investors access to ETFs that deliver innovation, not just in performance, but in every aspect of the fund's operations."

The modernized QQQ ETF will remain a key component of Invesco's popular Invesco QQQ Innovation Suite, the most expansive set of ETFs² to offer unique and varied exposures of the Nasdaq-100 Index^®. Launched in October 2020, the Invesco QQQ Innovation Suite is a 'one stop shop' for innovation that allows investors an opportunity to customize their exposure to the index based on their specific needs and preferences through a range of ten differentiated ETFs.

¹ By assets under management of top five largest ETFs in the world, Bloomberg as of 11/28/2025.
²The assets under management for the Invesco QQQ Innovation Suite, which includes the funds QQQ, QQQM, QQQJ, QQQS, QQA, QQMG, QQJG, QQHG, QBIG and QQLV is US$ 474,696,043,744, per Bloomberg, as of 11/30/25 – the highest AUM of any provider tracking the Nasdaq-100 Index^®.

About Invesco Ltd.
Invesco Ltd. is one of the world's leading asset management firms with 8,500 employees helping clients in more than 120 countries. With $2.1 trillion in assets under management as of September 30, 2025, we deliver a comprehensive range of active, passive and alternative investment capabilities. Our collaborative mindset, breadth of solutions and global scale mean we're well positioned to help retail and institutional investors rethink challenges and find new possibilities for success. For more information, visit www.invesco.com.

Important Information:

The Nasdaq-100 Index^® is designed to measure the performance of the largest 100 companies of Nasdaq-listed non-financial companies. An investment cannot be made directly into an index.

About Risk:

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 technology, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

Securities lending involves a risk of loss because the borrower may fail to return the securities in a timely manner or at all. If a Fund is unable to recover the securities loaned, it may sell the collateral and purchase a replacement security in the market. Lending securities entails a risk of loss to the Funds if and to the extent that the market value of the loaned securities increases and the collateral is not increased accordingly. 

Invesco does not offer tax advice. Please consult your tax adviser for information regarding your own personal tax situation.

The information in this release does not constitute a recommendation of any investment strategy or product. and should not be relied upon as the sole factor in an investment making decision. As with all investments there are associated inherent risks. This should not be considered a recommendation to purchase any investment product. This does not constitute a recommendation of any investment strategy for a particular investor.

Investors should consult a financial professional before making any investment decisions if they are uncertain whether an investment is suitable for them. Please obtain and review all financial material carefully before investing.

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. is the US distributor for Invesco's retail products, and is an indirect, wholly owned subsidiary of Invesco Ltd.

Nasdaq-100 Index® and QQQ®, are trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the "Corporations") and are licensed for use by Invesco Distributors Inc. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the product(s).

Note: Not all products, materials or services available at all firms. Financial professionals, please contact your home offices.

Not a Deposit l Not FDIC Insured l Not Guaranteed by the Bank | May Lose Value | Not Insured by any Federal Government Agency

NA4919833             12/25

Contact: Stephanie Diiorio, stephanie.diiorio@invesco.com, 212.278.9037 

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SOURCE Invesco Ltd.

FAQ

When will Invesco QQQ (IVZ) begin trading as an open-end fund?

Invesco expects QQQ to begin trading as an open-end fund on December 22, 2025.

How much did Invesco QQQ's expense ratio change in the IVZ announcement?

QQQ's total expense ratio was reduced from 0.20% to 0.18%, a 10% fee reduction.

Does the IVZ QQQ conversion create tax consequences for shareholders?

The company said there will be no tax implications for QQQ investors from the conversion.

What new capabilities does the Invesco QQQ conversion enable for IVZ shareholders?

Conversion enables reinvestment of income and participation in securities lending for potential added returns.

Will QQQ continue to track the Nasdaq-100 after the IVZ restructuring?

Yes; QQQ will continue to track the Nasdaq-100 Index and existing Nasdaq licensing and index administration remain unchanged.