Invesco’s ETF product evolution continues with the launch of the Invesco QQQ Equal Weight ETF (QEW) and the Invesco Diversified Dividend Opportunities ETF (DVVY). QEW expands on the firm’s iconic Innovation Suite, which is headlined by the Invesco QQQ Trust (QQQ). On the other hand, DVVY builds upon the Invesco Dividend Achievers ETF (PFM), which offers an actively managed fund seeking capital growth and income.
QEW: De-Concentrating the Nasdaq-100
QEW builds upon the foundation of the QQQ Innovation Suite with an equal-weighted version of QQQ. While QQQ has served as a market-cap-weighted powerhouse, QEW offers a different perspective by de-concentrating exposure to help mitigate volatility. In times of volatility such as now, QEW’s launch timing is auspicious.
QEW tracks the Nasdaq-100 Equal Weighted Index, allocating an equal 1% weight to every company within each index constituent at each quarterly rebalance. In effect, this will reduce concentration to the mega-cap giants who have been powering the markets for the last few years. However, it allows for participation of the other companies within the index, thus allowing for participation in tech growth using a more balanced risk profile.
“The longstanding partnership between Nasdaq and Invesco continues to deliver differentiated strategies, and we are excited to bring a Nasdaq-100 equal‑weight approach to our QQQ lineup,” said Brian Hartigan, global head of ETFs & Index Investments at Invesco. “QEW provides investors with a straightforward way to reduce single‑stock concentration while maintaining access to the innovative, growth‑oriented companies that have shaped the Nasdaq‑100 for decades. As investor needs evolve, QEW further strengthens the Invesco QQQ Innovation Suite, which offers a versatile set of tools designed to access Nasdaq companies and support a wide range of outcomes.”
DVVY: Actively Seeking Income
PFM has been a staple for income-seeking investors with its focus on “Dividend Achievers” or those companies with 10+ years of consecutive dividend increases. The newer DVVY variant offers a more more multidimensional approach in an actively managed wrapper.
Rather than focus solely on dividend growth, DVVY targets a more diversified opportunity set of dividend-paying stocks. The fund optimizes for yield, quality, and momentum. This helps to ensure that the portfolio isn’t squarely focused on yield opportunities that can deliver the most income, but income that is also sustainable over time. In a macro environment where interest rate volatility persists, DVVY offers investors a flexible yield-generation option that can complement Invesco’s other income-focused ETF offerings.
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