Invesco Ltd. is seeking to overhaul the financial structure of its flagship Invesco QQQ Trust (QQQ), a $244 billion exchange-traded fund (ETF) tracking the Nasdaq-100 Index, in a move that could unlock hundreds of millions of dollars in annual profits for the asset manager.
The QQQ, widely recognized as one of the most popular vehicles for investment in technology stocks, is currently structured as a unit investment trust (UIT). This legacy arrangement, dating back to the fund’s inception in the 1990s, dictates that most of QQQ’s annual fee revenue — about $488 million, according to Bloomberg — is divided between trustee Bank of New York Mellon and index provider Nasdaq. This leaves Invesco with minimal direct profit, as the remainder must be spent on marketing, per UIT rules.
To change this, Invesco has filed a proxy statement with the U.S. Securities and Exchange Commission (SEC), calling on QQQ shareholders to approve a conversion of the fund from a UIT to a conventional open-ended ETF. If approved at a special shareholder meeting scheduled for August 20, the restructuring would allow Invesco to retain a far greater share of QQQ’s revenue. The proposal also includes a reduction in the fund’s expense ratio by two basis points, from 0.20% to 0.18%, which could benefit investors with potentially lower costs over time.
The Invesco QQQ Trust is a major player in the U.S. ETF market, representing the largest ETF in terms of annual fee revenue within the roughly $11.7 trillion ETF industry. The fund, which mirrors the performance of the Nasdaq-100 Index, currently features approximately 60% exposure to the technology sector, with the remainder invested in consumer discretionary and healthcare stocks. Top holdings include Apple, Microsoft, Nvidia, Amazon, and Alphabet, positioning QQQ at the forefront of opportunities in artificial intelligence and technology innovation.
Over the past decade, QQQ has posted a cumulative return of 435.9%, translating to an average annual return of 18.3%, notably outpacing the S&P 500’s 242.5% return in the same period. The ETF maintains a strong financial profile, with an operating margin of 55.33%, profit margins of 32.56%, and a low debt-to-equity ratio near 0.07, reflecting reliable operational efficiency and financial stability.
Despite its track record, QQQ’s high concentration in the technology sector brings increased volatility, as tech stocks often react sharply to market developments. The fund’s relatively high price-to-earnings ratio of 34.41 also signals a premium valuation, which may be a concern for traditional value investors.
As of Friday, July 18, 2025, QQQ closed at $560.80, marking a slight decline of 0.18% from the previous session. The fund traded within a range of $560.00 to $563.42 during the day, with an intraday volume of 25,391,384 shares. The latest trading activity was recorded at 16:41:51 UTC.
An Invesco spokesperson declined further comment beyond the company’s proxy statement. If shareholders approve the conversion in August, industry analysts suggest the decision could mark a pivotal moment in both Invesco’s business model and broader trends in ETF management, potentially paving the way for revenue redistribution and more competitive fees for investors.
For more information on Invesco QQQ’s structure and investment profile, visit TechBullion or Nasdaq.com.