QQQ to Become an Open-End Fund

Core Insights - Invesco has successfully restructured its flagship $399 billion fund, QQQ, from a unit investment trust to an open-end fund, achieving over 51% shareholder approval [1] - The restructuring will lead to a reduction in fees from 20 basis points to 18, benefiting investors [1] - This change allows Invesco to significantly increase its annual revenue, redirecting over $100 million previously restricted to marketing [3] Investor Impact - Shareholders will no longer receive outreach calls from third parties hired by Invesco to encourage voting, which some found intrusive [2] - The reclassification enables Invesco to reinvest income and utilize securities lending, enhancing flexibility for better investor outcomes [3] Fund Performance - QQQ has performed well in 2023, returning over 20% year to date, outperforming the S&P 500, which is up over 16% [4] - The fund has attracted approximately $16 billion in net inflows this year, despite experiencing net outflows of around $1 billion in November [4] - QQQ is currently the fourth-largest US ETF, with Vanguard's Total Stock Market ETF (VTI) at $569 billion and Vanguard's Growth ETF (VUG) at $206 billion ahead of it [4]