Invesco QQQ Trust Experiences $676.6 Million Outflow

The Invesco QQQ Trust ETF (QQQ) has experienced a $676.6 million outflow, a 0.2% decrease week over week. Among the largest underlying components, T-Mobile US Inc (TMUS) is up 6.5%, Cadence Design Systems Inc (CDNS) is down 0.4%, and Fortinet Inc (FTNT) is lower by 0.6%. The ETF's low point in its 52-week range is $402.39, with a 52-week high of $566.06.

Invesco Ltd.'s move to convert its famed tech fund QQQ into an open-ended structure could translate into a $150 million yearly windfall for the asset manager. The company's Chief Financial Officer, Allison Dukes, announced on the earnings call that the transformation of the Invesco QQQ Trust Series 1 from a unit investment trust into an ETF could benefit net revenue and adjusted operating income by about four basis points, or roughly $150 million [1].

Currently, Invesco sees virtually none of the fee revenue that QQQ generates, but the proposed ETF conversion would allow the firm to reorder the revenue breakdown. While QQQ owners still need to vote to approve the change, the proposal has investors and analysts lining up behind the stock. TD Cowen upgraded the asset manager following last Thursday’s proxy statement, while Evercore analyst Glenn Schorr wrote Tuesday that "the move to collect fees on the Q’s" should give shareholders a reason to feel optimistic about revenue trends going forward [1].

Invesco shares were up nearly 2% in early trading Wednesday, following a 5.2% jump Tuesday, despite the firm missing estimates for second quarter inflows and earnings per share. The stock surged by more than 15% in its biggest one-day rally since 2022, driven by the company filing the proxy statement on Thursday evening [1].

If approved, Invesco would lower QQQ’s 0.2% expense ratio to 0.18%, according to the filing and earnings call. A special meeting has been called on October 24 to hold the vote, with a quorum of more than 50% of holders of outstanding voting shares needed. This could be a tall hurdle to clear, according to Todd Sohn of Strategas Securities [1].

Meanwhile, T-Mobile US Inc (TMUS), a key component of the QQQ ETF, reported record Q2 performance and raised its targets for 2025. The company reported a 6% increase in revenue to $17.4 billion for the past quarter, enabling it to increase its net profit by 10% to $3.2 billion. TMUS added 830,000 mobile contracts, a very good level compared to AT&T (401,000) and Verizon (-9,000) [2].

Deutsche Telekom shares, which posted the second-strongest rise on Frankfurt's DAX index on Thursday, are expected to rebound towards the broker's target price of €33, according to Oddo BHF analysts [2].

References:
[1] https://www.bloomberg.com/news/articles/2025-07-23/invesco-s-qqq-gambit-seen-unlocking-150-million-in-revenue
[2] https://www.marketscreener.com/news/deutsche-telekom-stock-benefiting-from-t-mobile-us-s-strong-results-ce7c5cd3d18ff422