A QQQ proxy call is an investor outreach from Invesco, the manager of theInvesco QQQ Trust, asking shareholders to vote on a significant restructuring to convert QQQ from aunit investment trust(UIT) to anopen-end fund, a move that brings benefits like lower fees (0.18% from 0.20%) and better governance, with calls continuing until votes are cast to ensure a quorum for modernizing the $400 billion fund.
Whats Happening?
Conversion:Invesco wants to change QQQs legal structure to an open-end fund, allowing for better operations and fee revenue capture, sayBloomberg analystsand The SEC filing on SEC.gov.
Proxy Vote:This requires shareholder approval, so Invesco is aggressively calling, emailing, and mailing shareholders to get them to vote, explainsMarketWatchandBMO Capital Markets analyst BMO.
Why Should You Care?
Lower Costs:The conversion aims to reduce the expense ratio from 0.20% to 0.18%, saving you money, notes Invesco.
Modernization:It upgrades QQQs structure, adds a board of trustees, and improves oversight, according toInvescos voting pageand SEC.gov.
Same Investment:You get the same Nasdaq-100 exposure and management, say Invesco andYouTube video.
What to Do If You Get a Call:
Vote:Cast your vote using the proxy materials sent to you; calls and mailings stop after you vote, say YD Financial Services and Invescos voting info page.
Verify:The calls are legitimate, though frequent, from Invesco to secure votes for this major fund change, reports MarketWatch and this YouTube video https://www.