Brian Hartigan on Why Invesco's QQQ Suite Stands Out Among Competitors

Invesco Global Head of ETFs & Index Strategies Brian Hartigan was on Bloomberg TV on October 5, where he discussed the growth of the firm’s QQQ Innovation Suite and how it stands out at a time when competitors are launching similar products.

“[QQQs] is its own ecosystem and it’s one of the leaders in this space. We actually tried to compete with ourselves before we converted the QQQs [to a 1940 Act structure]. We had the more modernized structure in QQQM, and that just hit $100 billion. As I’ve said, the QQQs grew by over $300 billion,” said Hartigan.

Key Takeaways:

Invesco’s QQQM crossed $100 billion as the broader suite expanded with global offerings like QQQI.

Management keeps funds like QQQM and QQQJ separate to offer investors targeted choices rather than consolidating them.

Mid-cap growth funds like QQQJ capture emerging leaders before they break into the top 100.

In addition to having the Invesco NASDAQ 100 ETF (QQQM) and the Invesco Nasdaq Next Gen 100 ETF (QQQJ) on its roster, the firm expanded the suite by launching the Invesco Nasdaq International Innovators 100 ETF (QQI) on September 23.

QQQJ provides exposure to non-U.S. large- and mid-cap innovative companies across both developed and emerging markets.

Hartigan was also asked specifically about why Invesco has decided to keep the two products separate and if at some point it would make more sense to combine them.

“Product rationalization is always part of our strategy, but as you had the [QQQs] with such a long track record and build-up of positioning and investor awareness, we’re comfortable with the structural differences of the two. And investors always have a choice,” Hartigan explained.

Beyond QQQ, QQQM and QQQJ are considered the most established members of the innovation suite because of their earlier inception dates (both were launched in October 2020), massive asset accumulation and focus on core market capitalizations.

QQQM’s assets under management stands at $113 billion, while QQQJ has amassed roughly $1.19 billion in AUM.

The former gives you the exact same mega-cap tech holdings as QQQ, just with a lower 0.15% fee.

Meanwhile, the latter tracks the “next 100” companies on the Nasdaq, making QQQJ a liquid, mid-cap growth fund. It is ideal for investors wanting to back emerging U.S. market leaders before they graduate to the Nasdaq-100 index.