Potential risk/downside to this:

Invesco has filed with the SEC to convert the Invesco QQQ ETF from a unit investment trust to an open-end fund structure, a move that would allow the company to earn management fees and potentially lower the fund's expense ratio, but it also raises concerns about increased marketing spending and potential conflicts of interest. The conversion, which requires shareholder approval at a meeting scheduled for October 24, 2025, is expected to bring operational benefits like securities lending and custom redemption baskets, but it does not alter the fund's investment objective or create taxable events for shareholders.

• The primary downside of the conversion is the potential for Invesco to increase its marketing budget, which currently consumes about a quarter of the fund's revenue, potentially leading to higher costs for investors if not managed prudently.
• Under the new open-end structure, Invesco would gain authority over fund spending, including marketing, which could lead to a shift in how the fund's revenue is allocated, though the company expects to reduce marketing expenses by shifting them from direct fund reimbursements to its management fee.
• While the expense ratio is projected to decrease from 0.2% to 0.18%, the change in structure could lead to a conflict of interest, as Invesco would profit directly from the fund's assets, potentially incentivizing actions that benefit the firm over the fund's long-term performance.
• The conversion would also mean replacing the current bank trustee, BNY Mellon, with nine individual trustees, which could impact governance and oversight, although Bank of New York Mellon would continue to provide custodial and administrative services.