Invesco’s $400B QQQ ETF Faces Voting Delay

Invesco has adjourned the special shareholder meeting for the Invesco QQQ Trust (QQQ) until December 5, 2025, after falling short of the votes needed to approve the ETF’s proposed conversion from a unit investment trust (UIT) into a standard open-end fund.

In a filing Friday, the firm said shareholder participation has been strong and that votes cast are “overwhelmingly in favor” of the proposals, but additional time is needed to reach the required totals. “This adjournment is typical for proposals like this,” Invesco wrote, urging investors to vote by mail, phone, or online ahead of the new meeting date.

If approved, the change would modernize the structure of one of the world’s largest and most-traded ETFs, while allowing Invesco to collect investment-management fees and operate QQQ under the same framework as its other ETFs. 

Under its current UIT setup, Invesco serves only as sponsor and cannot recognize advisory fees or conduct certain portfolio operations such as securities lending or custom redemption baskets.

The revamped structure would carry a 0.18% expense ratio, down slightly from QQQ’s current 0.20%. On its July earnings call, Invesco said roughly 14 basis points of that would cover Nasdaq-100 licensing, administrative, custody, and marketing costs, while the remaining 4 basis points would flow through as incremental net revenue and adjusted operating income to Invesco. 

The firm noted the revised fee allocation would “work similar to how we currently recognize fees on most of our ETFs.”

With just under $400 billion in assets, that 4 basis points equates to about $160 million in additional annual revenue for Invesco.

Shares of Invesco (IVZ) fell as much as 11% intraday on the adjournment news before rebounding to close up 1.4%. The stock remains up roughly 33% since July, when the company first announced its intent to pursue the conversion.