The Invesco QQQ Trust Series 1 (QQQ) is heading into a new era.
On Friday, December 19th, Invesco announced that QQQ’s shareholders voted to approve a series of proposals to modernize the longstanding fund. This includes shifting QQQ from a unit investment trust ETF into an open-end fund ETF, along with pivoting its governance structure towards a board of trustees. Notably, QQQ’s expense ratio will also be dropping from 0.20% to 0.18%.
The implications that these changes will bring to the fund are significant. Modernizing a longstanding, tried-and-true fund like QQQ can bring even more advisors and investors towards the fund and its approach to Nasdaq-100 exposure.
Advisors and investors should be aware that QQQ’s strategy is otherwise staying the same. Those who have long relied on QQQ for large-cap growth can still do so, but now can benefit from a more modernized governance structure and lower fees.
“Today’s landmark reclassification of Invesco QQQ, one of the largest and most recognizable ETFs in the world1, provides investors with a more beneficial way to access the companies of the Nasdaq-100 Index®,” added Brian Hartigan, Global Head of ETFs and Index Investments, Invesco. “This aligns with Invesco’s goal to offer investors access to ETFs that deliver innovation, not just in performance, but in every aspect of the fund’s operations.”
How QQQ Stacks Up to QQQM
This modernization will bring QQQ closer in alignment to the Invesco NASDAQ 100 ETF (QQQM). QQQM still has a slightly lower fee, at 0.15%, giving the fund a potent use case as a low-cost means for staying engaged with large-cap growth stocks.
However, QQQ has seen longstanding value through its significant daily trading volumes. This liquidity tends to trend higher than QQQM, thus giving QQQ plenty of justification for charging a slightly higher fee.
Even before the modernization efforts took place, QQQ has put up an impressive performance in the past year. As of November 29th, 2025, the fund is up 22.08% over the past twelve months.
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