Overview

• On July 20, Invesco filed an SEC proxy to convert its $355 billion QQQ ETF from a unit investment trust into an open-end fund.
• The change would let Invesco collect a 0.18% management fee directly, unlocking north of $700 million in annual revenue currently restricted to marketing reimbursements.
• QQQ investors will vote on October 24 on both the fund’s structural conversion and the election of nine new trustees alongside appointing Invesco as investment advisor.
• The open-end fund structure would introduce securities lending, custom redemption baskets and additional regulatory protections for ETF holders.
• Invesco shares have jumped over 15% in three trading sessions as the market reacted to the prospect of new fee streams.