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QQQ

Observant1
edited December 22 in Fund Discussions
"Invesco QQQ converted from a unit investment trust to an open-end fund on Dec. 22, 2025.
Investors approved the change on Dec. 19, which also lowers the annual fee to 0.18% from 0.20%."

"Restructuring the exchange-traded fund from a trust confers marginal benefits for fundholders:
open-end funds can lend securities and reinvest cash to more tightly track an index.
Both are common practices that may marginally improve the total return that an investor receives.
The underlying Nasdaq-100 Index and the ETf’s replication method did not change,
and Morningstar’s opinion of the strategy remains the same."

https://www.morningstar.com/funds/big-changes-invesco-qqq-what-investors-should-know

Comments

  • yogibearbullyogibearbull
    edited December 22
    Ages ago, ETFs SPY, QQQ etc started out as UITs, i.e. ETF-UITs - they didn't know any better.

    Later, regular ETF structures proved to be better. So, their firms introduced SPYM, QQQM.

    There are important differences between ETF-UITs (rigid) and regular ETFs (flexible) for using derivatives and reinvestments of dividends.

    Now QQQ itself has changed from ETF-UIT to regular ETF.

    SPY is thinking about it.

    This will be pushed a big news, as another innovation. me say ho-hum (-:).
  • Observant1
    edited December 22
    "This will be pushed a big news, as another innovation. me say ho-hum (-:)."

    This change is definitely not a big innovation but it does provide some minor improvements.
    I wonder why it took Invesco so long to convert QQQ from a UIT structure to an OEF?
    I assume they were pleased to earn a few extra bps on QQQ (fifth largest ETf) vs. QQQM.
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