Shares of asset manager Invesco (IVZ) have been volatile during the second half of 2025, rising and falling on news about one of its largest and most well-known funds, the Invesco QQQ Trust (QQQ).
An October 24 shareholder vote to approve the conversion of QQQ from its legacy unit investment trust (UIT) structure into a more modern exchange-traded fund (ETF) governed under the Investment Company Act of 1940 has been adjourned until December because management has not secured the required number of votes.
The UIT model, an older structure that predates ETFs, comes with strict limitations. UITs can't reinvest dividends or alter their portfolios once set, and they must replicate the benchmark exactly.
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The structure also restricts how sponsors earn revenue. QQQ can only collect reimbursements for marketing and administrative expenses, not profits. Given that QQQ manages roughly $388 billion in assets, that restriction leaves a lot of money on the table.
Converting QQQ to a 1940 Act ETF would change that. It would slightly lower the fund's expense ratio from 0.20% to 0.18%, a small win for shareholders. More importantly, it would allow Invesco to earn management fees directly. ETF.com estimates the conversion could generate an additional $160 million in annual revenue for the firm.
When the proposal was announced in July, Invesco's stock surged intraday as investors anticipated the impact. Now, Invesco is using the delay to aggressively solicit votes. Still, QQQ doesn't define Invesco, and Invesco isn't just QQQ.
As prominent as QQQ is, the firm manages 239 other ETFs across equities, fixed income, commodities, and alternatives – many of which are growing in both size and popularity.
Understanding Invesco's ETF lineup
As of October 30, Invesco offers 240 U.S.-listed ETFs. While there are many ways to classify ETFs, Invesco organizes its lineup by overarching strategy, which is then divided by asset class.
One area seeing fast growth since the 2022 bear market – when both stocks and bonds fell as rates and inflation rose – is alternatives.
This category broadly includes anything outside of traditional equities and fixed income, such as absolute return (strategies seeking positive returns in all market conditions), bank loans (floating-rate, first-lien debt), commodities (futures-based funds tied to energy, metals or agriculture), currency (baskets of foreign currencies such as the euro, yen or pound).
It also includes digital assets (currently bitcoin and ether), hedged strategies (equity ETFs using options to limit downside risk), MLPs (midstream energy partnerships), preferreds (hybrid securities paying dividends), even real estate (REITs that generate income).
Still, Invesco's largest segment remains equity ETFs, which are mainly grouped by geography, sector, industry, factor and size. Sector ETFs include areas such as technology, energy and health care, while industry ETFs drill down into niches such as semiconductors or biotechnology.
Factor ETFs focus on styles including value, growth, quality, low volatility or dividend yield, while size-based funds target small-, mid-, or large-cap companies. Many combine these traits – for instance, a U.S. small-cap value ETF.
The same structure extends to fixed-income ETFs, where Invesco covers a range of durations, credit qualities and geographies. Offerings span traditional Treasuries and corporates to inflation-protected, municipal and securitized bonds such as collateralized loan obligations (CLOs).
A key feature of Invesco's fixed-income lineup is its "BulletShares" series – defined-maturity bond ETFs that hold bonds to a target maturity date, making them useful for laddering or income planning.
Finally, Invesco's growing thematic ETF family sits between sector and industry exposure, focusing on broad megatrends such as artificial intelligence (AI), genomics, water and clean energy.
Altogether, investors can find nearly any ETF to fit a specific thesis within Invesco's lineup. The firm's strategy aims to keep investors within its ecosystem by offering specialized choices well beyond its flagship QQQ.
How we chose the best Invesco ETFs to buy
Selecting the best Invesco ETFs isn't straightforward. With such a large lineup, the right choice depends on each investor's risk tolerance, time horizon and financial objectives.
For example, QQQ is easily the firm's most recognizable product and one of the best performers historically. But its heavy exposure to growth and technology may not suit lower-risk or income-focused investors looking for stability or yield.
Because of this, we focus on ETF attributes that should appeal to any investor, regardless of the underlying exposure. These are the usual three-part criteria of fees, size and liquidity.
Fees: We set a maximum expense ratio of 0.20%, ensuring cost efficiency remains front and center.
Assets under management: ETFs needed at least $1 billion in assets to qualify. Larger funds typically offer greater trading stability and a lower risk of closure.
Liquidity: We required a 30-day median bid-ask spread of 0.05% or less to make sure investors can enter and exit positions efficiently without incurring excess trading costs.
The goal isn't to simply rank funds by size or return, but to highlight "best in breed" options suitable for a wide range of investor profiles.
Here are the best Invesco ETFs to buy.
Data is as of October 30.
Invesco NASDAQ 100 ETF
- Assets under management: $67 billion
- Expense ratio: 0.15%
- 30-day median bid-ask spread: 0.01%
Until the flagship Invesco QQQ Trust converts from its legacy UIT structure, Invesco continues to offer the Invesco NASDAQ 100 ETF (QQQM) as a modern, buy-and-hold alternative.
QQQM undercuts QQQ's 0.20% expense ratio by five basis points, though it lacks QQQ's robust options market, which makes the latter better suited for active traders. For long-term investors, QQQM's lower costs and tax efficiency – supported by a modest 0.48% 30-day SEC yield – make it the smarter choice.
The portfolio includes the 100 largest nonfinancial companies listed on the Nasdaq, with heavy representation from the Mag 7 and more than half of its weight in technology.
That concentration has driven strong results, with a three-year annualized return of 31.91%. But it also introduces valuation and sector risk.
Learn more about QQQM at the Invesco provider site.
Invesco S&P 500 Equal Weight ETF
- Assets under management: $72 billion
- Expense ratio: 0.20%
- 30-day median bid-ask spread: 0.02%
If concentration risk in mega-cap tech stocks concerns you, the Invesco S&P 500 Equal Weight ETF (RSP) offers a simple remedy. Instead of weighting by market capitalization like the standard S&P 500, RSP gives every stock an equal 0.2% weight when rebalanced quarterly.
The result is a systematic "buy low, sell high" mechanism that keeps the portfolio diversified across all 11 GICS sectors.
Practically speaking, this curbs the dominance of technology while boosting exposure to financials, industrials and health care.
Over the last decade, RSP has lagged the S&P 500 slightly due to mega-cap outperformance and higher fees. But since its inception in April 2003, returns are within 30 basis points of the traditional index – a strong case for long-term consistency.
Learn more about RSP at the Invesco provider site.
Invesco MSCI USA ETF
- Assets under management: $9.4 billion
- Expense ratio: 0.04%
- 30-day median bid-ask spread: 0.02%
Invesco doesn't compete directly with Vanguard or iShares in the ultra-low-cost space, but the Invesco MSCI USA ETF (PBUS) is one of its most affordable offerings for core U.S. equity exposure.
For just 0.04% in annual fees – or $4 per $10,000 invested – PBUS provides broad access to more than 500 U.S. stocks weighted by market capitalization.
Although its composition looks similar to S&P 500 ETFs, the benchmark rules differ, creating slight variations in holdings and performance.
This distinction also makes PBUS a useful tax-loss harvesting partner for investors holding S&P 500 ETFs, as it avoids "substantially identical" classification that triggers the IRS's wash-sale rule.
Learn more about PBUS at the Invesco provider site.
Invesco S&P 500 Quality ETF
- Assets under management: $15 billion
- Expense ratio: 0.15%
- 30-day median bid-ask spread: 0.02%
Among Invesco's lineup of large-cap U.S. equity ETFs, the Invesco S&P 500 Quality ETF (SPHQ) targets the quality factor: companies with strong fundamentals and durable balance sheets.
Each stock is assigned a "quality score" based on return on equity, accruals ratio and financial leverage. Only the 100 highest-scoring companies are included, resulting in a narrower, higher-quality portfolio.
Industrials currently represent the largest sector weighting, followed by consumer staples, giving SPHQ a more defensive tilt compared with the tech-heavy S&P 500.
Historically, performance has trailed the broader market slightly due to lower technology exposure and higher fees. But the ETF may hold up better in downturns thanks to its focus on profitability and stability.
Learn more about SPHQ at the Invesco provider site.
Invesco S&P 500 Momentum ETF
- Assets under management: $13.3 billion
- Expense ratio: 0.13%
- 30-day median bid-ask spread: 0.02%
Momentum has been one of the most persistent equity factors over the past decade, and the Invesco S&P 500 Momentum ETF (SPMO) is built to capture it.
Fund managers select 100 stocks from the S&P 500 with the highest "momentum scores," calculated by dividing their 12-month price change by volatility. Constituents are weighted by both momentum score and market capitalization.
SPMO is reconstituted (eligible stocks are added and removed) and rebalanced (allocation weights are reset to maintain target exposure) twice a year, in March and September.
Over one- and three-year periods, the ETF has outperformed the S&P 500, though with higher volatility. SPMO leans cyclical, with about 34% in technology and 20% in financials.
Learn more about SPMO at the Invesco provider site.
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