When people think of innovation, they often stop with headline tech companies: Apple, Facebook, Amazon. But innovation reaches far beyond big tech names. It includes healthcare, communications companies, next-gen entertainment, and more. Having a diversified strategy that incorporates the most innovative companies today — and in the future — may be the key to better outcomes for your clients.
In the upcoming webcast, Beyond Tech: How Innovation is Changing the World, Ryan McCormack, factor & core equity strategist at Invesco, and Mark Marex, research & development specialist at Nasdaq Global Indexes, will explore the world of innovation, including key considerations for investors when researching the space and ways to effectively invest.
For example, Invesco recently partnered up with Nasdaq to expand its Invesco QQQ Innovation Suite with the introduction of two new environmental, social, and governance (ESG) ETF offerings: the Invesco ESG NASDAQ 100 ETF (QQMG) and the Invesco ESG NASDAQ Next Gen 100 ETF (QQJG). The two new offerings advance the firm’s goal of providing investors the benefit of personalizing their exposure to the innovative companies listed on the Nasdaq Stock Market.
The Invesco QQQ Innovation Suite now includes six different investment structures that complement Invesco’s QQQ:
- Invesco ESG NASDAQ 100 ETF (QQMG)
- Invesco ESG NASDAQ Next Gen 100 ETF (QQJG)
- Invesco NASDAQ 100 ETF (QQQM)
- Invesco NASDAQ Next Gen 100 ETF (QQQJ)
- Invesco NASDAQ 100 Index Fund (IVNQX – R6 Shares[1])
- Invesco NASDAQ-100 Growth Leaders Portfolio (QQQG)
Through the launch of QQMG and QQJG, which track the performance of the Nasdaq-100 ESG Index® and the Nasdaq Next Generation 100 ESG Index™, respectively, Invesco expands this exposure to ESG by giving investors the option to access to the same companies as QQQM and QQQJ, but with a tilt towards ESG-related values.
While the original composition of both the Nasdaq-100 Index® and the Nasdaq Next Generation 100 Index was already predisposed to companies favorable to ESG, the Nasdaq-100 ESG Index™ and Nasdaq Next Generation 100 ESG Index™ both include additional layers of ESG analysis. In constructing these ESG indexes, Nasdaq filters constituent companies through a robust set of ESG criteria utilizing Sustainalytics’ market-leading ESG data.
Specifically, the two new ETFs’ underlying indexes adjust constituent company weightings based on how effectively the companies manage ESG risk, more favorably weigh companies with low ESG risk scores, and exclude companies with high ESG risk scores. In applying this methodology, every company remaining in the indexes is reweighted in consideration of its ESG risk score; only six companies in the Nasdaq-100 Index did not qualify for inclusion in the Nasdaq-100 ESG Index, and 10 companies in the Nasdaq Next Generation 100 Index did not qualify for inclusion in the Nasdaq Next Generation 100 ESG Index.
Financial advisors who are interested in learning more about innovative strategies can register for the Tuesday, November 2 webcast here.
