Mark R. Greer
Partner
Experience
Stradley Ronon Advises Invesco in Novel Conversion of $400B QQQ Trust to Open-End ETF
Stradley Ronon represented Invesco Capital Management in a first-of-its-kind conversion of the $400 billion Invesco QQQ Trust, Series 1, from an exchange-traded fund (ETF) organized as a unit investment trust (UIT) to an ETF organized as an open-end management investment company.
As a result of the December 22 conversion, shareholders of QQQ will be able to enjoy the benefits of a modernized structure and will benefit from a reduced total expense ratio, resulting in a 10% fee reduction for shareholders. In addition, Invesco will be able to earn a profit from its management of the fund for the first time. Under the Investment Company Act of 1940, sponsors of a UIT are prohibited from charging a UIT any fees that include an element of profit, and the conversion has removed that limitation.
Invesco is an independent global investment firm managing $2.1 trillion in assets under management for both retail and institutional investors as of September 30.
Learn more in Invesco’s announcement.
Alan P. Goldberg, Mark R. Greer, Claire Olivar and Eric S. Purple
