In order to make the change, Invesco will need to procure 51% approval from shareholders. Bloomberg reported that it fell just short of its December 5 goal, but has moved the deadline to December 19 — two more weeks to make it official. Invesco noted that shareholder response for the reclassification has been mostly favorable. "Shareholder participation in the proposals for the Special Shareholder Meeting (the Meeting) for Invesco QQQ Trust, Series 1 (QQQ) has continued to be strong, and votes cast are over ...

Core Viewpoint - The Invesco QQQ ETF, despite being the fifth-largest ETF globally with over $400 billion in assets, may not be the best option for tech exposure, as it does not effectively target technology companies [1][3]. Group 1: QQQ's Structure and Limitations - QQQ is often perceived as a tech ETF due to its inclusion of major tech stocks, but its investment objective is based on the Nasdaq 100, which includes the largest non-financial companies listed on the Nasdaq without specific investment criteria [3][4]. - The construction rules of the Nasdaq 100 Index prioritize promoting the exchange rather than providing a sound investment rationale, limiting the fund's opportunity set [5]. Group 2: Alternative Options - The Vanguard Information Technology ETF (VGT) is presented as a superior alternative, as it tracks the MSCI US IMI 25/50 Information Technology index, providing true tech exposure by investing in companies classified as tech by the Global Industry Classification Standard (GICS) [6]. - VGT includes significant tech stocks that are not present in QQQ, highlighting the limitations of QQQ in providing comprehensive tech exposure [7].

Core Viewpoint - Bank of America has adopted a bullish stance on large-cap growth ETFs in its 2025 outlook, upgrading its category view from Neutral to Favorable and initiating coverage on 14 growth ETFs while refreshing ratings on five others [1][5][7]. Market Context - The upgrade occurs amidst a market dominated by tech, mega-cap, and AI stocks, with the concentration of the top stocks in the S&P 500 reaching unprecedented levels, driven by the "magnificent 7" [2][4]. - Despite high valuations, Bank of America believes that improved balance sheet quality and revenue growth could sustain the ongoing market rally [2]. ETF Performance - Large-cap growth ETFs like VUG and SCHG have seen significant inflows as investors pursue AI-driven earnings momentum [5]. - A total of 8 ETFs received the highest "1-FV" rating from Bank of America, indicating strong performance relative to other factors [9]. Risk Considerations - The market is currently facing additional risks, including potential government shutdowns, a weaker labor market, and possible fatigue from three years of continuous gains in the S&P 500 [4][7]. Rating Methodology - Bank of America evaluates ETFs based on various factors such as ROA, ROE, valuation, earnings growth, and expense ratios, with the best ETFs earning a "1-FV" rating and the worst receiving a "3-UF" rating [8][10].