Invesco Doesn’t QQQuite Have the Votes for ETF’s Transition

Core Viewpoint - Invesco is seeking shareholder approval to convert its $400 billion QQQ fund from a unit investment trust to an open-end fund, which would allow it to take control of fee revenue and reduce marketing expenses significantly [2][4]. Group 1: Shareholder Voting Process - Invesco requires proxy votes from shareholders to proceed with the conversion of the QQQ fund, with the current proposal needing 51% approval to pass [2][3]. - As of the latest SEC filing, the proposal has garnered 50% support, with 92% of those who voted in favor, indicating that over 54% of shares have cast votes [3]. Group 2: Financial Implications - The proposed changes include a 10% reduction in fees, lowering the fee from 20 basis points to 18 basis points, which is expected to benefit shareholders through a lower expense ratio [6]. - Invesco plans to cut advertising spending on the ETF by at least half, believing that the reduction in marketing will be outweighed by the benefits of lower expenses for shareholders [4].