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Invesco and Nasdaq Expand Partnership with 2 New Thematic ETFs

Nasdaq and global asset manager @InvescoUS are expanding their partnership with the launch of two new exchange-traded funds (ETFs), the Invesco Nasdaq Biotechnology ETF $IBBQ and the Invesco PHLX Semiconductor ETF $SOXQ.

Nasdaq and global asset manager Invesco are expanding their partnership with the launch of two new exchange-traded funds (ETFs), the Invesco Nasdaq Biotechnology ETF (IBBQ) and the Invesco PHLX Semiconductor ETF (SOXQ).

The new ETFs track the Nasdaq Biotechnology Index (NBI) and PHLX Semiconductor Sector Index (SOX), both of which are the longest-standing benchmarks for the respective themes that have become increasingly relevant amid the global pandemic.

The biotech index provides access to over 270 innovative companies listed on the Nasdaq Stock Market, including large-, mid- and small-cap companies at every stage of growth. Some of the securities in IBBQ include Amgen (AMGN), Gilead Sciences (GILD), Illumina (ILMN), Vertex Pharmaceuticals (VRTX) and Moderna (MRNA). Meanwhile, the semiconductor index includes the 30 largest names in semiconductor design and manufacturing, such as Texas Instruments (TXN), Intel (INTC), Broadcom (AVGO), QUALCOMM (QCOM) and NVIDIA (NVDA). 

“We are excited to expand our relationship with Nasdaq in order to offer investors another way to access innovative companies currently shaping the way we live and work,” said Invesco’s Global Head of ETFs and Indexed Strategies Anna Paglia. “There has never been a more relevant moment for these two themes, and we are happy that we could ensure investors now have the most cost-effective way to invest in Nasdaq-listed companies through indexes that have been live for almost three decades.”

With the Invesco Nasdaq Biotechnology ETF and the Invesco PHLX Semiconductor ETF, Invesco aims to have the most competitively priced products in their respective categories. While the new ETFs each have a total expense ratio of 19 basis points, Invesco, in partnership with Nasdaq, will waive advisory fees of both ETFs until Dec. 17, 2021, “effectively bringing the total expense ratio of each ETF to 0 basis points,” the press release noted.

“Adding these two ETFs bolsters our already robust offerings in the technology sector and thematic industries within that sector,” said Paglia. “Invesco continues to expand its ETF offerings to provide clients with the ability to select the exposures to help them produce the best outcomes.”

The addition of these new ETFs builds upon Invesco’s innovation suite, which encompasses the Invesco QQQ ETF (QQQ), the Invesco Nasdaq-100 ETF (QQQM), the Invesco Nasdaq-100 Index Fund (IVNQX) and the Invesco Nasdaq Next Gen 100 ETF (QQQJ).

“Nasdaq is proud to be the exchange partner to a global community of healthcare and semiconductor leaders,” said Lauren Dillard, Executive Vice President and Head of Investment Intelligence for Nasdaq. “Leveraging our rules-based and transparent indexes, we are pleased to build on our partnership with Invesco, bringing investment products that enable investors to gain meaningful exposure to the pioneering companies who are transforming tomorrow.”

To learn more about the Nasdaq Biotechnology Index, read the latest research here.

To learn more about the PHLX Semiconductor Sector Index, view the latest research here.

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