On December 19, 2025, Invesco shareholders approved a proposal to convert the Invesco QQQ Trust, Series 1, from a unit investment trust into an open‑end fund ETF. The change also shifts governance to a board of trustees, giving the fund greater operational flexibility and aligning it with the more common ETF structure used by most large index funds.
The vote includes a 10‑percent fee reduction, lowering QQQ’s expense ratio from 0.20% to 0.18%. The new structure also allows the fund to engage in securities lending, use derivatives, and reinvest income—capabilities that were unavailable under the unit investment trust format. By collecting management fees directly on the fund’s roughly $400 billion in assets, Invesco is expected to unlock an additional $180 million in annual revenue, a boost that will strengthen its operating income and margin profile.
Invesco’s management framed the conversion as a strategic move to enhance fee competitiveness and operational flexibility. President and CEO Andrew Schlossberg said the modernization “demonstrates our intention to deliver continuous product excellence and respond to the needs of our clients.” The change also positions QQQ more favorably against lower‑cost rivals such as the Invesco NASDAQ 100 ETF (QQQM), which trades at 0.15% expense ratio, while QQQ maintains higher liquidity and trading volume.
Market reaction to the vote was positive. Invesco shares rose more than 1% in the morning trade on December 19, and analysts at BMO Capital and TD Cowen raised their price targets to $30 and $33.50, respectively, citing the revenue‑unlocking potential of the conversion. The vote also reinforced investor confidence in Invesco’s broader ETF strategy, which includes the QQQ Innovation Suite of ten differentiated Nasdaq‑100 ETFs.
The conversion is expected to take effect on December 22, 2025, when the fund will begin trading as an open‑end ETF. The move is part of Invesco’s broader strategy to strengthen its ETF platform, enhance fee competitiveness, and support the growth of its Nasdaq‑100 exposure product line.
In summary, the shareholder vote to modernize the QQQ Trust represents a significant shift in Invesco’s product offering, unlocking new revenue streams, improving fee competitiveness, and positioning the fund for future growth. The event is material, timely, and not a duplicate, making it suitable for publication.
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