On Wednesday, Invesco Ltd. (NYSE: IVZ), a leading global asset management firm, announced the expansion of the Invesco QQQ Innovation Suite with the introduction of two new environmental, social, and governance (ESG) ETF offerings. The launch of the Invesco ESG NASDAQ 100 ETF (QQMG) and the Invesco ESG NASDAQ Next Gen 100 ETF (QQJG) advances the firm’s goal of offering investors the benefit of personalizing their exposure to the innovative companies listed on the Nasdaq Stock Market.
The Invesco QQQ Innovation Suite now includes six different investment structures that complement Invesco’s QQQ:
- Invesco ESG NASDAQ 100 ETF
- Invesco ESG NASDAQ Next Gen 100 ETF
- Invesco NASDAQ 100 ETF
- Invesco NASDAQ Next Gen 100 ETF
- Invesco NASDAQ 100 Index Fund
- Invesco NASDAQ-100 Growth Leaders Portfolio
“Invesco has been fortunate to work in lockstep with Nasdaq for almost two decades, finding beneficial ways to offer investors all over the globe access to Nasdaq-listed companies,” said Anna Paglia, global head of ETFs & indexed strategies at Invesco. “Today’s launch will mark our continued collaboration. We are confident that the new Invesco QQMG and QQJG ETFs will bridge innovation and ESG to offer every type of investor a unique way to help meet their desired investment outcomes.”
Just over one year ago, the Invesco QQQ Innovation Suite reconceptualized access to innovation with the launch of QQQM and QQQJ, which track the performance of the Nasdaq-100 Index® and the Nasdaq Next Generation 100 Index, respectively. To date, the QQQ Innovation Suite has enabled investors to tilt their investment exposure towards specific attributes that best suit their investment goals while still capturing category-defining companies with a known legacy of innovating in their respective markets that are represented in Invesco QQQ. This personalized exposure has resonated with investors, and together QQQM and QQQJ have gathered $3.4 billion in AUM in one year.2
Through the launch of QQMG and QQJG, which track the performance of the Nasdaq-100 ESG Index® and the Nasdaq Next Generation 100 ESG Index, respectively, Invesco expands this exposure to ESG by giving investors the option to access to the same companies as QQQM and QQQJ, but with a tilt towards ESG-related values. While the original composition of both the Nasdaq-100 Index® and the Nasdaq Next Generation 100 Index was already predisposed to companies favorable to ESG, the Nasdaq-100 ESG Index™ and Nasdaq Next Generation 100 ESG Index™ both include additional layers of ESG analysis. In constructing these ESG indexes, Nasdaq filters constituent companies through a robust set of ESG criteria utilizing Sustainalytics’ market-leading ESG data.
The indexes adjust constituent company weightings based on how effectively the companies manage ESG risk, more favorably weigh companies with low ESG risk scores, and exclude companies with high ESG risk scores. In applying this methodology, every company remaining in the indexes is reweighted in consideration of its ESG risk score; only six companies in the Nasdaq-100 Index did not qualify for inclusion in the Nasdaq-100 ESG Index, and 10 companies in the Nasdaq Next Generation 100 Index did not qualify for inclusion in the Nasdaq Next Generation 100 ESG Index.3
“The interest in integrating ESG considerations into investment portfolios is on the rise globally. We are pleased to work with Invesco to introduce a refined and ESG-friendly version of one of the world’s most preeminent benchmarks,” said Lauren Dillard, executive vice president and head of investment intelligence at Nasdaq. “The strength of Nasdaq-100 Index underscores the innovation and transformative changes of the companies within their respective industries. Our partnership with Invesco continues to expand the suite of Nasdaq-100 and other Nasdaq index-based products to provide investors with optionality that can meet their preferences and help achieve investment goals.”
Since its inception over 35 years ago, the Nasdaq-100 Index has become the world’s preeminent large-cap growth index.4 Although the Nasdaq-100 Index is most closely connected with the technology sector, approximately 50% of the index constituents come from other sectors and industries.5 However, many of the companies in the Nasdaq-100 Index consistently have a higher dollar spend on research and development regardless of their sectors.6 For this reason, they are often well-positioned to capitalize on transformative, long-term themes in the marketplace, such as the technology driving clean energy and sustainable resources.
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1 Class R6 shares are primarily intended for retirement plans and shareholders of omnibus intermediaries that meet certain standards and for
institutional investors. See the Fund’s prospectus for more information
2 Bloomberg L.P, as of October 13, 2021
3 As of the most recent quarterly rebalancing on June 21, 2021
4 There are more than 490 products tied to the Nasdaq-100 globally, including ETFs, Options, Annuities, Futures, and more as of September 30, 2021.
5 Bloomberg L.P., The technology sector makes up 48.3% of the Nasdaq-100 Index as of September 30, 2021.
6 Bloomberg L.P, Nasdaq-100 companies Research & Development reinvestment rate is 9.8% as compared to 7.3% by S&P 500 companies as of April 5, 2021.
About Invesco Ltd.
Invesco Ltd. 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 $1.5 trillion in assets on behalf of clients worldwide as of September 30, 2021. For more information, visit www.invesco.com.
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 confidently. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on Twitter @Nasdaq, or at www.nasdaq.com.