Latest news with #InvescoQQQ
Globe and Mail
3 days ago
- Business
- Globe and Mail
Will Nasdaq ETFs Continue Their Rally Going Into Q2 Earnings?
The Nasdaq Composite Index has been soaring, making a series of new records in recent sessions, driven by strong corporate earnings, AI-driven optimism and expectations of policy support from the Federal Reserve. As such, the ETFs tracking the index have also gained momentum. These include Invesco QQQ QQQ, Invesco NASDAQ 100 ETF QQQM, First Trust NASDAQ-100 Equal Weighted Index Fund QQEW, Invesco NASDAQ Next Gen 100 ETF QQQJ and Direxion NASDAQ-100 Equal Weighted Index Shares QQQE. Strong Start to Q2 Earnings Season The second-quarter earnings season got off to a strong start, with companies not only beating estimates but also providing a favorable outlook for current business trends, which should help solidify earnings expectations for the third quarter and beyond. The S&P 500 earnings from 62 companies reported so far are up 9.3% from the same period last year on 5.8% higher revenues, with 82.3% beating EPS estimates and an equal proportion beating revenue estimates, per Earnings Trend report. Among the Mag 7, Tesla TSLA and Alphabet GOOGL will report results today. Total Q2 earnings are expected to be up 11.7% on 11.3% higher revenues (read: 5 Sector ETFs Set to Power Q2 Earnings Growth). According to FactSet, more than 60 S&P 500 companies have reported so far, with roughly 85% beating analyst expectations. AI Boom Powers Growth Bets The generative AI wave continues to be Nasdaq's growth engine. Demand for data centers, GPUs, AI-focused software, and automation tools is driving investor enthusiasm across the board. Companies like Advanced Micro Devices (AMD), Broadcom (AVGO) and Palantir (PLTR) are seeing a surge in interest as investors look for exposure to the next phase of the AI revolution. Rate Cut Hopes Add Fuel With inflation data remaining relatively benign and economic growth stabilizing, markets are increasingly pricing in at least one rate cut by the Fed later this year. Lower interest rates benefit high-growth tech stocks, which are more sensitive to borrowing costs. Fed Chair Jerome Powell is expected to speak later this week, and any dovish signals could further support the rally. Global Appetite for U.S. Tech International investors are returning to U.S. tech in a big way. With geopolitical tensions and economic uncertainty in China and Europe, Wall Street, particularly large-cap U.S. tech, is seen as a relative safe haven. This global rotation is boosting capital inflows into Nasdaq-tracking ETFs like QQQ and QQQM. ETFs in Focus Invesco QQQ (QQQ) Invesco QQQ provides exposure to the 100 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. It is one of the largest and most popular ETFs in the large-cap space, with an AUM of $357.1 billion and an average daily volume of 44 million shares. Invesco QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: Signs of Fatigue in Wall Street Rally? ETF Strategies to Follow). Invesco NASDAQ 100 ETF (QQQM) Invesco NASDAQ 100 ETF is identical to QQQ, tracking the NASDAQ-100 Index, but comes with lower annual fees of 15 bps. It holds 104 securities in its basket, with a higher concentration on the top three firms. Invesco NASDAQ 100 ETF has accumulated $55.1 billion in its asset base and trades in an average daily volume of 3 million shares. It has a Zacks ETF Rank #1. First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW) Holding 100 stocks, First Trust NASDAQ-100 Equal Weighted Index Fund provides equal exposure to stocks on the Nasdaq-100 Equal Weighted Index. It has amassed $1.9 billion in its asset base while trading in moderate volumes of 49,000 shares a day, on average. First Trust NASDAQ-100 Equal Weighted Index Fund charges 55 bps in annual fees and carries a Zacks ETF Rank #3 with a Medium risk outlook. Invesco NASDAQ Next Gen 100 ETF (QQQJ) Invesco NASDAQ Next Gen 100 ETF follows the NASDAQ Next Generation 100 Index, which comprises securities of the next generation of Nasdaq-listed non-financial companies, i.e., the largest 100 Nasdaq-listed companies outside of the NASDAQ-100 Index. In total, the product holds 111 securities. Invesco NASDAQ Next Gen 100 ETF charges 15 bps in annual fees and sees a good trading volume of nearly 80,000 shares a day. With an AUM of $629.1 million, QQQJ has a Zacks ETF Rank #3. Direxion NASDAQ-100 Equal Weighted Index Shares (QQQE) Direxion NASDAQ-100 Equal Weighted Index Shares provides an equal-weight exposure to the NASDAQ-100 Index by tracking the NASDAQ-100 Equal Weighted Index. It has amassed $1.2 billion and trades in an average daily volume of 94,000 shares. Direxion NASDAQ-100 Equal Weighted Index Shares charges 35 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook. Bottom Line With major earnings from tech titans on deck, Nasdaq's momentum will likely be tested, but for now, the bulls are firmly in control. Want key ETF info delivered straight to your inbox? Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report Invesco QQQ (QQQ): ETF Research Reports Alphabet Inc. (GOOGL): Free Stock Analysis Report First Trust NASDAQ-100 Equal Weighted ETF (QQEW): ETF Research Reports Invesco NASDAQ 100 ETF (QQQM): ETF Research Reports This article originally published on Zacks Investment Research (
Yahoo
5 days ago
- Business
- Yahoo
US equities lead 2025 ETF flows: A closer look at global trends
US equity exchange-traded funds (ETFs) have pulled in $191 billion so far this year, while international equity flows have reached $81 billion, according to AllianceBernstein. Julie Gunts, AllianceBernstein global head of ETF strategy and partnerships, joins Market Catalysts to discuss where flows are heading next. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. US equity ETFs have seen $191 billion in inflows this year, representing about 60% of total ETF inflows overall, and international equities have had $81 billion in inflows. That's close to the total for all of 2024. As investors weigh continued trade uncertainty, where will the flows go next? Will we see continued trends? Want to bring in Julie Goltz Alliance Bernstein, global head of ETF strategy and partnerships for this week's ETF report brought to you by Invesco QQQ. Julie, thank you so much for being here. Thanks for having me. So, I guess it's not a surprise that international has seen big flows. That's what we've seen been seeing and talking about. We look writ large. Where is some of that concentrated? And do you expect that to continue? Yeah, I think if you look at, you know, the international flows, it's really driven by performance year to date. So, you know, US equities while a volatile first half of the year ended up, you know, 6% for the S&P 500. If you look at the breakdown of international, European equities, in US dollar terms, returned almost 25%. And so I think, you know, ETF flows are to some extent chasing those returns, but I think you know, also expected future returns. And so if you look at the returns in Europe, um, it's driven by industrials, so a lot of the defense companies as Europe is increasing their defense spending and also, you know, infrastructure. European fiscal spending is expected to continue, and their companies set up to benefit from that. We've also seen financials really lead with, you know, the ECB cutting rate, and you know, that benefiting banks and then utilities. Utilities are immune to tariffs, are immune to FX risk, and so have been performing well. On the flip side in Europe, the underperformers consumer discretionary, which is not surprising. Those are global companies impacted by US consumer and potential tariff risk. And outside of International, where are you seeing kind of interesting demand trends? Yeah, I mean, we're really seeing demand for emerging market ETFs as well, especially on the active side. So Alliance Bernstein is an active ETF issuer. There aren't that many true fundamental emerging market ETFs out there. Um, and so we're seeing demand for that asset class as, you know, fundamental investing really matters in emerging markets. Um, and so continue to see growth there as well. That makes sense. Um, you guys only introduced your ETF business what, three years ago? Yep. Yeah, I mean it's just been amazing to watch the growth of the industry. How have you guys sort of managed to grab assets in market share? What do you feel like is your angle? Sure. Yes, so we we launched our first ETFs in September of 2020 2022. So coming up on our three-year mark and have about $8 billion in AUM, and we're really seeing growth, you know, our ETFs are driven by our research, our investment capabilities. And so, you know, long-term investors, you know, looking for active investment strategies. And we've also seen, you know, areas of the market, our municipal bond brand is really strong, and so we have a suite of tax aware ETFs. We've also have, you know, a suite of buffered ETFs that have surpassed a billion dollars. And so taking, you know, unique solutions or different types of investment outcomes and packaging them in ETFs for our clients. Whether it comes to you guys or the industry writ large, the, you know, pace of record flows that we just continue to see year after year after year, anything that's going to slow that down or is it just going to keep going? I think it's going to continue to accelerate. Like, so far year to date, we've seen over $600 billion in ETF flows in in the US. Interestingly, active is almost 40% of that, yet still 10% of the AUM. Um, and you know, investors like the ETF vehicle. There's the transparency, the daily liquidity, the tax efficiency. And so as you know, more money is put to work, either from cash on the sidelines or mutual fund single stock investments, ETFs are a really easy option and efficient options for people to get exposure to the marketplace. You know, I know you've also been you mentioned in the break you've been traveling internationally. What's the ETF industry and demand like outside of the US? You know, this year we also have seen, you know, real growth in global ETFs. And so global regulators, I think, are, you know, getting on board with that. This is a vehicle, you know, of the future. This is a more modern option for investors. And, you know, for example, I was just in Taiwan. AB is about to launch the first fixed income active ETF in Taiwan. Active ETFs were just allowed from a regulatory perspective earlier this year. And so different pockets of Asia, we're seeing similar trends, um, and in Europe as well. You know, ETFs continue to grow, both in the passive and the active space. Interesting, Julie. Thank you so much. Appreciate it. Thank you. Related Videos Hilton's upbeat Q2 earnings: Why this analyst is still Neutral Hasbro Q2 beat, MARA to raise $850M, Otis issues weak guidance GE Vernova, Thermo Fisher, Enphase Energy: Trending Tickers Japanese auto stocks are surging on Trump's tariff deal Effettua l'accesso per consultare il tuo portafoglio
Yahoo
18-07-2025
- Business
- Yahoo
Invesco Aims to Unlock QQQ's Hundreds of Millions in Profit
(Bloomberg) -- It's a quirk in the booming world of passive investing: Famed tech fund QQQ is the most profitable offering in the $11.7 trillion ETF industry, but Invesco Ltd. earns virtually nothing from running it. Now the asset manager is asking shareholders to change that. The Dutch Intersection Is Coming to Save Your Life Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests Mumbai Facelift Is Inspired by 200-Year-Old New York Blueprint LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say Invesco filed a proxy statement with the Securities and Exchange Commission on Thursday asking owners of the Invesco QQQ Trust Series 1 for their blessing to convert it into an open-ended fund from a unit investment trust, a little-used structure dating back to the birth of the first exchange-traded funds in the 1990s. It's a seemingly small ask with enormous consequences for Invesco. With $355 billion in assets and a 0.2% expense ratio, a back-of-the-envelope calculation shows that QQQ generates roughly $711 million in annual fee revenue — more than any other ETF, data compiled by Bloomberg show. But in its current setup as a unit investment trust, the bulk of that is divided between the fund's trustee — the Bank of New York Mellon — and the provider of the underlying index, which is Nasdaq. As mandated by the fund's prospectus, any remaining revenue must be spent on marketing QQQ. That leaves essentially nothing for Invesco, the fund's sponsor. Theoretically, that dynamic would change if shareholders approve the firm's request. And that would be a win-win for both Invesco and QQQ holders, according to Bloomberg Intelligence. 'They have basically been running this fund, which is the greatest ever, as a charity,' said ETF analyst Athanasios Psarofagis, referring to QQQ's nearly 1,260% return since its 1999 inception. 'If they can re-purpose that, it could free up revenue to invest in other areas, like new products.' Converting into an open-ended fund may open the door to changing the revenue breakdown, according to Psarofagis. Invesco shares rose as much as 11% on Friday to the highest level since February. Invesco will lower QQQ's expense ratio by two basis points to 0.18% if the item, along with two others, are approved, according to the filing. Should the vote pass, Invesco will also replace BNY Mellon as the fund's trustee with a board of individuals, and appoint Invesco Capital Management as QQQ's investment adviser, a Friday press release said. Unit investment trusts don't have investment advisers, so no firm is currently performing that role. The firm is calling for a special meeting on Oct. 24 to hold the vote. Invesco declined to comment on Thursday beyond the filing. (Updates with Friday's share move for Invesco and press release.) What the Tough Job Market for New College Grads Says About the Economy How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All Godzilla Conquered Japan. Now Its Owner Plots a Global Takeover A Rebel Army Is Building a Rare-Earth Empire on China's Border Why Access to Running Water Is a Luxury in Wealthy US Cities ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
17-07-2025
- Business
- Yahoo
Invesco Aims to Unlock Hundreds of Millions in Profit From QQQ
(Bloomberg) -- It's a quirk in the booming world of passive investing: Famed tech fund QQQ is the most profitable offering in the $11.7 trillion ETF industry, but Invesco Ltd. earns virtually nothing from running it. Now the asset manager is asking shareholders to change that. The Dutch Intersection Is Coming to Save Your Life Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say Invesco filed a proxy statement with the Securities and Exchange Commission on Thursday asking owners of the Invesco QQQ Trust Series 1 for their blessing to convert it into an open-ended fund from a unit investment trust, a little-used structure dating back to the birth of the first exchange-traded funds in the 1990s. It's a seemingly small ask with enormous consequences for Invesco. With $355 billion in assets and a 0.2% expense ratio, a back-of-the-envelope calculation shows that QQQ generates roughly $711 million in annual fee revenue — more than any other ETF, data compiled by Bloomberg show. But in its current setup as a unit investment trust, the bulk of that is divided between the fund's trustee — the Bank of New York Mellon — and the provider of the underlying index, which is Nasdaq. As mandated by the fund's prospectus, any remaining revenue must be spent on marketing QQQ. That leaves essentially nothing for Invesco, the fund's sponsor. Theoretically, that dynamic would change if shareholders approve the firm's request. And that would be a win-win for both Invesco and QQQ holders, according to Bloomberg Intelligence. 'They have basically been running this fund, which is the greatest ever, as a charity,' said ETF analyst Athanasios Psarofagis, referring to QQQ's nearly 1,260% return since its 1999 inception. 'If they can re-purpose that, it could free up revenue to invest in other areas, like new products.' Invesco will lower QQQ's expense ratio by two basis points to 0.18% if the item, along with two others, are approved, according to the filing. The firm is calling for a special meeting on Oct. 24 to hold the vote. Converting into an open-ended fund may open the door to changing the revenue breakdown, according to Psarofagis. Invesco declined to comment beyond the filing. What the Tough Job Market for New College Grads Says About the Economy How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All Forget DOGE. Musk Is Suddenly All In on AI The Quest for a Hangover-Free Buzz How Hims Became the King of Knockoff Weight-Loss Drugs ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
17-07-2025
- Business
- Bloomberg
Invesco Aims to Unlock Hundreds of Millions in Profit From QQQ
It's a quirk in the booming world of passive investing: Famed tech fund QQQ is the most profitable offering in the $11.7 trillion ETF industry, but Invesco Ltd. earns virtually nothing from running it. Now the asset manager is asking shareholders to change that. Invesco filed a proxy statement with the Securities and Exchange Commission on Thursday asking owners of the Invesco QQQ Trust Series 1 for their blessing to convert it into an open-ended fund from a unit investment trust, a little-used structure dating back to the birth of the first exchange-traded funds in the 1990s.
