Core Insights - Invesco QQQ Trust Series 1 is transitioning to a modernized structure, moving from a unit investment trust ETF to an open-end fund ETF, with a new governance model and a reduced expense ratio from 0.20% to 0.18% [1][2] Group 1: Fund Modernization - The approval of modernization proposals aims to attract more advisors and investors to QQQ while maintaining its strategy focused on large-cap growth [2][3] - The modernization aligns QQQ more closely with Invesco NASDAQ 100 ETF (QQQM), which has a lower fee of 0.15%, providing a competitive low-cost option for investors [3] Group 2: Performance and Liquidity - QQQ has demonstrated strong performance, with a 22.08% increase over the past twelve months as of November 29, 2025 [4] - The fund's significant daily trading volumes provide higher liquidity compared to QQQM, justifying its slightly higher fee structure [4]

Core Insights - Invesco QQQ Trust has undergone a significant restructuring, transitioning from a unit investment trust ETF to an open-end fund ETF, which is expected to reduce investor fees by 10% [1][2][3] Fund Structure and Fees - The total expense ratio for Invesco QQQ will decrease from 0.20% to 0.18% as part of the conversion [2] - The new structure allows for reinvestment of income and participation in securities lending, with no tax implications for investors [2] Management and Strategy - Andrew Schlossberg, President and CEO of Invesco, emphasized the importance of this transformation in delivering better outcomes for investors and responding to client needs [3] - The modernized QQQ will continue to track the Nasdaq-100 Index, which includes the 100 largest non-financial companies listed on the Nasdaq [3] Innovation and Product Offering - The reclassification aligns with Invesco's goal to provide innovative ETF solutions, enhancing access to the Nasdaq-100 Index [4] - Invesco QQQ remains a key component of the Invesco QQQ Innovation Suite, which offers a range of ten differentiated ETFs for customized exposure to the index [4][5] Assets Under Management - As of November 30, 2025, the assets under management for the Invesco QQQ Innovation Suite total approximately $474.7 billion, the highest among providers tracking the Nasdaq-100 Index [5] Company Overview - Invesco Ltd. is a leading global asset management firm with $2.1 trillion in assets under management as of September 30, 2025, serving clients in over 120 countries [6]

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].