NASDAQ, INC. Invesco NASDAQ Future Gen 200 ETF (QQQS) will screen smaller-cap companies by estimated patent value to select 200 Nasdaq-listed companies for investmentNDAQ
ATLANTA, Oct. 13, 2022 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ), a leading global asset management firm, announced today the expansion of the Invesco QQQ Innovation Suite to include a new exchange‑traded fund (ETF) that will access smaller-cap companies screened by a key marker of innovation – high quality patents. The Invesco NASDAQ Future Gen 200 ETF (QQQS) will add an efficient overlay to small-cap and micro-cap companies listed on The Nasdaq Stock Market that are not included in the Nasdaq 100 Index® or Nasdaq Next Generation 100 Index™. High quality and high value patents may be an indicator of future innovation potential in a smaller-cap company.
"Companies included in the Invesco QQQ Innovation Suite have always spent considerably more on research and development1 and Invesco wanted to capture that same commitment to innovation on a smaller cap-tier," said John Hoffman, Americas Head of ETFs and Index Strategies, Invesco. "By applying a high quality patent screen, the QQQS portfolio will focus on smaller-cap companies with a competitive advantage on certain inventions. This will allow investors to customize their market capitalization exposure to companies who are pioneering the future."
Two years ago on October 13, 2020, the Invesco NASDAQ 100 ETF (QQQM) and Invesco NASDAQ Next Gen 100 ETF (QQQJ) were launched to offer investors access to category-defining companies with a known legacy of innovation, as well as the next generation of companies who are just beginning to impact the world. This personalized exposure has resonated with investors, and together QQQM and QQQJ have gathered $5.2 Billion in AUM since launch.2 Now, the addition of QQQS to the Innovation Suite has created a modular set of three ETFs that can be used in together or separately to personalize investor access to companies of all sizes focused on future innovation.
QQQS will track the Nasdaq Innovators Completion Cap Index™, an intelligent, equal weighted index that uses a patent data screen created by IPR Strategies. IPR Strategies, a leader in the science of patent valuation, believes that high quality and high value patents represent a future asset and are an early indicator of future positive value. IPR Strategies works with Nasdaq to assign a realistic value to patents based on multiple parameters, including a high commitment to research and development and valuable intellectual property, to source small-cap and micro-cap companies that may be laying the groundwork to become the next industry giants. Given its long-standing expertise in smart beta, Invesco believes that the addition of a thoughtfully composed layer of criteria (patent value) to an overall capitalization screen (small and micro-cap) may be successful in identifying companies with a focus on innovation in their industries.
"The future of innovation, as uncovered by the patent screening process, underscores the transformative changes of the companies within their respective industries," said Cameron Lilja, Vice President, Global Head of Index Product, Nasdaq. "We are excited to expand our Invesco partnership with this addition to their suite of Nasdaq index-based products, which provides investors with another option to help them achieve their investment goals."
1 Bloomberg L.P, Nasdaq-100 companies Research & Development reinvestment rate is 10.1% as compared to 7.3% by S&P 500 companies as of March 31, 2022. Most recent data available.
2 Bloomberg L.P, as of October 3, 2022
Invesco Ltd. (Ticker NYSE: IVZ) is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. With offices in more than 20 countries, Invesco managed US$1.4 trillion in assets on behalf of clients worldwide as of June 30, 2022. For more information, visit www.invesco.com/corporate.
Nasdaq (Nasdaq: NDAQ) is a global technology company serving the capital markets and other industries. Our diverse offering of data, analytics, software and services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on Twitter @Nasdaq, or at www.nasdaq.com.
Invesco Distributors, Inc. is not affiliated with Nasdaq or IPR Strategies.
Beta is a measure of risk representing how a security is expected to respond to general market movements. Smart Beta represents an alternative and selection index based methodology that seeks to outperform a benchmark or reduce portfolio risk, both in active or passive vehicles. Smart beta funds may underperform cap-weighted benchmarks and increase portfolio risk.
The Nasdaq-100 Index is designed to measure the performance of the 100 of the largest domestic and international non-financial securities listed on The Nasdaq Stock Market based on market capitalization. The NASDAQ Next Generation 100 Index™ is designed to measure the performance of the next generation of Nasdaq-listed non-financial companies; that is, the largest 100 securities outside of the NASDAQ-100 Index®. The NASDAQ Next Generation 100 Index™ is designed to measure the performance of the next generation of Nasdaq-listed non-financial companies; that is, the largest 100 securities outside of the NASDAQ-100 Index®. An investment cannot be made directly into an index.
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.
Stocks of small and mid-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale.
The Fund's Underlying Index (Index) is composed of companies with valuable portfolios of patents. The Index Provider relies on an independent data provider to ascertain the potential value of an issuer's patents and related intangible assets (i.e., intellectual property and research & development activities) for inclusion in the Index. The Fund's performance may suffer if the data provider's does not correctly value an issuer's patents or if the companies included in the Index ultimately do not benefit from holding such patents. There is no guarantee that the Index will be composed of companies with the most valuable patents.
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 Shares.
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.
The sponsor of the Invesco QQQ TrustSM, Series 1 (QQQ), 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 Nasdaq, Inc. and have been licensed for use by Invesco. 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, Invesco NASDAQ Next Gen 100 ETF, and Invesco NASDAQ Future Gen 200 ETF are not sponsored, endorsed, sold or promoted by the Nasdaq, Inc. or its affiliates (Nasdaq, Inc., with its affiliates, are referred to as the "Corporations"). The Corporations have no liability in connection with the administration, marketing or trading of Invesco NASDAQ 100 ETF, Invesco NASDAQ Next Gen 100 ETF, and Invesco NASDAQ Future Gen 200 ETF.
Contact: Stephanie Diiorio, stephanie.diiorio@invesco.com 212.278.9037
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