ETF Edge - Zero-Day Options: A New ETF on the Block 9/18/23

Episode Date: September 18, 2023

CNBC’s Bob Pisani spoke with Sylvia Jablonski, CEO of Defiance ETFs, and D.J. Tierney, Senior Investment Portfolio Strategist at Schwab Asset Management.They dug deep into a new ETF on the market that’s looking to capitalize on a massively popular way to make short-term market bets – zero-day options. The world’s first-ever “zero days to expiration” ETF is here, and it’s making big waves in the ETF business – particularly as options trading has been red-hot in recent years. They also broke down the latest ETF flows from the third quarter and told investors how to equip themselves for the fourth quarter. In the “Markets 102” portion, Bob continued the conversation with D.J. Tierney from Schwab. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The ETF Edge Podcast is sponsored by InvescoQQQQ, supporting the innovators changing the world. Investco Distributors, Inc. Welcome to ETF Edge, the podcast. If you're looking to learn the latest insights on all things, exchange, traded funds, you're in the right place. Every week, we're bringing you interviews, market analysis, and breaking down what it all means for investors. I'm your host Bob Pisani. Today on the show, we're digging deeper into a new ETF on the market that's looking to capitalize on a big popular way to make short-term market bets. It's called Zero Data Exploration Options.

The world's first ever zero days to expiry. ETF is here, and it's making big waves of the ETF business, particularly as options trading has been red-hot in recent years. We'll also get the latest ETAF flows from the third quarter and tell investors how to equip themselves for the fourth quarter. Here's my conversation with Sylvia Jablonsky, the CEO of Defiance EPS and DJ Tierney. He's the senior investment portfolio strategist at Schwab Asset Management. So, Sylvia, the strategy here is fairly simple.

You're harvesting a premium, right? You're selling puts on a NASDAQ index. Selling puts is a bullish call, guys. So give us an example. How would this work? Yeah, and thanks for delineating that. It is a bullish call. It is not a bearish call.

So what we do on a daily basis is that we enter into trades where we essentially sell slightly in the money puts on a daily basis. And to your point, they're almost void the same day. So at the close of today, we'll be selling puts that are slightly the money and then the trade expires tomorrow or cash settles essentially. So there's no stock assignment and hopefully if the market has sort of minimal movement, we capture the full or some portion of premium on a daily basis. And the idea is that you would capture enough premium on a daily basis where you generate outsized returns for investors. So we're looking to hopefully

generate 25 basis points per day shooting for 60% type of income distribution. If we managed to do that, we will be the highest income distribution on the street. Yeah, that's high. So I just want to make it clear what we're doing here. So remember, you're selling a put. You want the market to go up. Yes. So if the market goes up, the put expires worthless.

You keep the entire premium. Exactly. And you distribute this as a dividend. Yes. Right. So we collect the premium on a daily basis, and we'll distribute the actual income on a monthly basis. So the way that you can kind of, you know, see that actual income if you're an investor is to look

at your account at the end of the month and it'll come in. So what kind of dividend do you think you're going to? Yeah, annualized. It depends on the market. Yeah, it depends on the market, right? So we back tested it from the time that these were in existence, which was 2022, and we compare them to some of the other strategies out there, the QILDs, the Jeffees of the world. And, you know, we're looking to return two to two and a half times that because what happens is with those strategies, which are actually a very similar risk profile. That's another point that we can talk about to. It's super interesting, but, you know, we've heard a lot about how risky this is. The risk is pretty similar to a covered call strategy, right? But what happens is that every day, we get a chance to take a little bite of the apple and generate premium instead of just kind of being locked in for that monthly cost. It is a covered call premium, essentially, but it's a daily. Yes, exactly, exactly. So it's easy to see why these options have exploded this year, folks. Think about what this does.

This gives active traders more ways to play the market. It's a one-day bet. So you win or lose the same day. It's cash settled, and that's very important. You don't get stock. You get cash. And so you get this dopamine rush if you win on a daily basis, then you can do it all over again tomorrow.

So I guess the problem we have, and here's a little summary about how they work here, the criticism out there, and even Gary Gensler at the SEC has said this, that this encourages market timing and day trading. And we know the vast majority of people are going to lose money doing this. Gensler's written about increasing gamification of trading. You know about these kinds of criticisms. I know you're providing a product to the market, but, you know, what do you say to that? Yeah, exactly.

And what's really interesting is that the covered cost. strategies don't really get that same bad route. But this is the same thing. It's just sort of... But it's a daily thing. It's a daily thing. There is a, you know, dopamine, a little rushing, but daily bet. There is for sure.

But what I would say is that that strategy has essentially just been turned upside down with the realization that, like, hey, you can actually generate daily income and perhaps outperform those strategies. But what I'd like to say about this is, and we talked about this before, this is something you can do in a retirement account. If we're holding cash short-term treasuries that return 5%, we're selling in the money puts that are cash settled. So, you know, worst case scenario, you have the risk of cues of the NASDAQ or, you know, J-E-P-Y on S&P.

There is limited loss. You can only lose what you put in. Exactly, exactly. Exactly. And perfect example. Friday, NASDAQ was down 1.7 percent. We were down about 1.4 percent because you're- You're selling the premium.

Yeah, you got a little bit of premium there. All right, let me bring you in D.J. You're the wise old man here. This is obviously for active traders. Right. How do you advise Schwab investors who want to be active traders and, you know, try to time the markets in general, these kinds of strategies? these kinds of strategy. What do you tell people? Well, we really do skew towards long-term investing, long-term strategic allocation.

And I think it's great. The ETF marketplace has been one of innovation and has brought a lot of new strategies and access to a lot of things for investors. But from our perspective with equities, international equities, bonds, commodities, I mean, traditional asset classes, there's a lot to do. And we really do focus on years, decades of planning and asset allocation. You know, this kind of strategy, you know, could be, you know, a fringe or satellite complement, but a bulk of your assets you would want in longer-term traditional assets. So what do you tell the people want to scratch that it? You know, this is always the inner Jack Bogle and me kind of comes out. Jack used to say take 10% of your portfolio and

go ahead and, you know, try to gamble it away. But he always used to say, you've got to find out, you're probably not outperforming. Yeah, no, I mean, the data would suggest when people try to time the market, individual investors, even advisors, when they try to time short-term market moves. Generally, it works against them, either transaction costs, taxes, they're just getting the calls wrong. So really, one of the swab investing principles is to ignore the noise and focus on the long-term horizon. And let me turn to flows, well, I got you here.

This is one of the great expert in flows here. He covers it for swab here. We're still seeing money coming into ETFs this year. But it's interesting, equities and fixed income of getting inflows, but not as much as we used to see in the past. There's a little over $300 billion. I don't think you can put up this full screen here. We've been used to seeing twice that amount in a historical basis.

What's happening to sort of slow down the flows a little bit this year? So, you know, I've got the privilege to talk to a lot of Schwab clients. I travel, go to Schwab branches. I talk to advisors all over the country. And there's just a lot of uncertainty right now, right? Just think about what we're facing on the macro economy, right? Is the economy going to turn over to a recession? Or do we, the political landscape and the upcoming election, commercial real estate?

So all this uncertainty has anxiety. And when we see investor anxiety, generally we do see incremental flows slow. So it kind of makes sense. But as you point out, the flows into fixed income this year, over $100 billion into bond ETFs, you know, that's an interesting thing. And it could be early days. There could be a lot more growth behind that. It was the inflows into short-term treasuries were the big story in really the first four or five months of the year.

It seems to have moderated a little bit. Talking to you here, one area we're seeing inflows into is intermediate corporate bonds. The Schwab five to 10-year corporate bond, SCHI's seeing inflows. That's surprising to me. material inflows. And to us it's heartening, but the, you know, rates have gone up and actually returns in a lot of fixed income, intermediate long-term strategies have had negative returns this year, but not intermediate corporates because the spread, the corporate spread has outweighed the rise in base rates. And so now, if you're looking at it now, intermediate corporates are

yielding 5 and 3 quarters percent. And that, you know, makes sense for a lot of the U.S. American public, baby boomer generation ending in retirement. We think the they're under-allocated into fixed income, and five and three quarters for term investments. And this is attractive. That's pretty darn good. It is. Our strategist, Kathy Jones and research likes it. It's understandable that, you know, Sylvia, you see all these people happily sticking in these 5%, you know, even two-year returns at this point.

And not jump. You think, like, gee, you'd get FOMO with the S&P up 16%. A lot of people would say, okay, I'm going to switch to the S. But a lot of people would seem perfectly happy with their. or five percent yield. After years of getting nothing on any kind of treasuries at all. Yeah, exactly. I mean, but this is exactly why we did that, right? That's why instead of doing a covered call strategy where you're holding S&P 500 and getting 1.4 or 5 percent at best on your div and then whatever you generate from covered calls, we put those short-term

strategies in there, or there's short-term treasuries in there for that reason. You're getting 5% on that money. You know, it's true. This year has been very much sit on the sidelines, a little bit of FOMO and collect that steady 5 to 6% div. But, you know, I think a lot of the products coming out there are saying, let's give investors a chance to get outsized income because that is essentially what they want. You know, you talk to Schwab offices all around the country. I know you're going to be leaving. We're in downtown Manhattan here, and you're going to be going to see some offices around here. What are you hearing from everyone?

You're a good, like, ear to the ground. What are there concerns out there? I mean, one of the most remarkable things this year is the soft landing is so far materializing, and everyone was positioned the opposite. way eight months ago. Yeah, you mentioned the growth of the NASDAQ, right? I think the sharp uptick in growth strategies and NASDAQ and really that narrow leadership in the S&P 500, the top ones that have really left dirt. That's caught poppy people by surprise. But there's just not a lot of credibility behind it. A lot of people are worried, and that's that anxiety I talk to. So I think people are anxious and they're really, you know, they're coming, people coming into Schwab branches,

they're calling into our numbers, they're going online, really looking for guidance as to what's next. And again, we don't know what's coming in the next week or quarter. but we'll say focus on what do you want to accomplish in five years, 10 years, talk to a planner, have an overall asset allocation strategy, and ignore the short-term moves. Yeah. You know, the amazing thing is just how happy people are with these short-term treasury yields. My mother called me. I always make fun of this in March and April, no, the end of March,

and was standing there with the bank tellers saying, I can't believe it, Robert, I'm getting 4% on my one-year CD. I haven't had that in years and years. I was getting 0.3% of my bank accounts. That's right. So she was absolutely delighted. And so I think one of the reasons it's been so sticky is people like my mother actually yanked money out of their savings accounts, not just out of their stock accounts, but out of their savings accounts. And that's why those numbers in money market funds are so sticky, you know, what's $7 trillion that we're seeing.

Sylvia, let me just ask, I'm going to go back to the zero date expiration options. We know the derivatives market dwarfs the underlying markets in size. The numbers I see are like crazy, you know, like a quadrillion dollars or something, the notional value of derivatives. We literally don't know how big the derivatives market is. Is there any concern these derivatives eventually get so big that there's some kind of systematic, systemic risk, excuse me, that the tailwaxed the dog essentially. Yeah, and people have talked about that for a long time, whether it's through Leverd University TF products or whether through these same-day options products. But if you look at the CBO actually has a lot of good data on this, if you look at the flow on this, even if, even on the days in June where these zero DTE options had, you know, sort of a huge day, you know, max amount of options contracts sold, there was only a 1% net change in the volume. So, you know, you have buyers and sellers. And historically, for all of these derivative products, it tends to balance out. You know, you have market makers out there hedging their exposure. You have clients hedging their exposure. There are buyers and sellers in equal amounts. So we haven't really seen a derivative. product yet that really skews it one way or the other where we're sort of nervous about not being

able to maintain the exposure or the trade that we're looking to put on. It's remarkable. I had Ed Tilly on from CBO. He helped introduce, popularize these zero data exploration options. Index options in the first six months trading up 43 percent from the same period last year. Cash equities options down 11 percent. So individual cash equities down index option trading. And most of this there's the numbers there. Most of this is an increase is zero dated expiration options. So this is a hit. I mean, Ed's just ecstatic. It's a trillion. I think they put out the number the other day. I think the average was a trillion dollars in assets traded in these short-term options.

Now, this is an ETF that you have. You just introduced this last week. These are options on the NASDAQ index. Yes. But you're introducing options on the S&P, right? Tell us about this? Yes. So tomorrow morning, JEPY, JEPI, JEPI will start trading. It's the same concept. We're going to be trading, essentially short selling puts that are slightly in the money on the S&P 500 at the close, and the trade will expire within 24 hours.

Hopefully we'll collect the premium on a daily basis. And the idea is to give investors, you know, outsized returns, enhanced income with the risk of the S&P 500 versus the NASDAQ. You know, the two most popular arguably traded indices in the world are cues and spy. So there's also zero data exploration options on the Russell 2000, right? Yes. So there's only three. They're all, and they're all index.

Only three. Yes. So it's NASDAQ, S&P, Russell. But you're not doing one on the Russell. We have one filed for that. You do? Yes. Yes. The next one that will be trading, though, will be Jetby tomorrow.

Tomorrow. Okay. So that one's coming up. I just want to move on quickly while I have her here. Sylvia runs the Defiance Pure Electric Vehicle ETF, which just came out what in June? In June. Yeah. Very auspicious since Tesla is up very big this year.

So this is a very concentrated bet. I think this is exposure to just five companies. This is a big bed. Usually they're indexed that are much wider exposure. So this is a really concentrated bet on five companies. Essentially, you're dealing with Tesla, Lee, Rivian, and Neo, right? Yes. Tell us about...

And Ex-Peng is the fifth. Yeah. Tesla's about a quarter of this. Yes. There you go. There's the holdings. And there's ex-Peng. too. Exactly. So it starts out as equal weight and then it runs for a quarter and gets

rebalanced quarterly. So Tesla tends to trump the whole thing. But what we did is we realize that investors are buying a lot of ETFs for electric vehicle exposure. But if you break down what is in those ETFs because of the diversification rule, they hold stocks like Apple, Microsoft, Navidia. Yeah, it's a mess. Absolutely great stocks, but they're not electric vehicle stocks. And we thought to ourselves, well, it's better to be diversified than not, right? So instead of just buying Tesla, you want a little more exposure to the space. So we took the top five electric vehicle companies listed in the U.S. by market cap. So, you know, why not six?

We looked at the ones that were sort of liquid enough, had strong market cap, and give investors pure exposure to that space. And ex-pay doesn't get much talked about. Yeah, it doesn't. But these are, you know, there's a lot of news recently that they invested in D-D, the smart car technology. Volkswagen gave them a big investment. It's Chinese company.

Chinese company, ADR listed here. So, yeah, you're getting the two world's largest economies. More than 60% of cars sold in China right now, new car sales or electric vehicles. We know that number is picking up in the U.S. It's going to be roughly 18% globally, we think, which is nearly double from last year. We think that that number is going to be about 30% in the next five to 10 years. So, you know, why not if you're interested in innovation technology, think about this fast-going space? And of course, we know the politics behind it, right?

The infrastructure bill, tax credits, you know, increase in charging stations, you know, billions of dollars going into the classic auto retailers to redo their factories and, you know, build more electric vehicles for carbon neutrality and things like this. So we just think it's a phenomenal opportunity. And this would fit into the Schwab buy and hold in our opinion. Well, look, I like the concept of concentrated bets. And this is the Kathy Woods ideology, because if you're going to try to outperform, you're going to try to outperform. form, you have to make a concentrated bet. You can't mimic the S&P technology index. That's not going to work. If that's going to be your benchmark, you're going to be in trouble. Yes. And the good thing about this, though, this isn't one of those far out, you know, we're waiting to see some spaceship flying

in front of our home for you to generate a return, right? These cars are on the road and they're selling. I'm waiting for the spaceship. Yeah, absolutely. I will go up and say, where have you been and give me the keys. Take me with you. Yeah, yeah. But, you know, a lot of thematics get a bad rap for this world, you know, this thing that is going to happen someday, hopefully in our lifetime. This is happening now. Now it's definitely happening. It's a great concentration. And it's interesting that you're dealing with essentially, what, three Chinese companies here? Yes. Yes. And it can change. The ETF is structured so that it's the top five companies by market cap that generate 50% of revenues from EV. So if Lucid takes over, you know, Li Auto or Ex-Pung or Neo, then, you know, Lucid's number

three. So it's sort of an equitable allocation and an equal-weight ETF. Now it's time to round out the conversation with some analysis and perspective to help you better understand ETS. This is the Markets 102 portion on the podcast. We'll be continuing with the conversation with DJ tourney from Schwab. And DJ, one of the things we were chatting about on the, the ETF broadcast a few moments. ago was the amazing resilience of everybody going into short-term treasuries and money market funds. People seem very happy getting 4% on their 10-year and 5% on their two years. You were noting that we're now getting flows into corporate mid-duration corporate ETFs.

I'm wondering if there's a distinction now. There seems to be a massive amount of people are very happy to collect their 5%, not go back into the stock market. Is there a bifurcation here? Are there people looking to get five and three quarters? Are they thinking about the stock market and missing out? Or is there a way to distinguish between the people or all this group that's sticking with these short-term and intermediate term bonds? Well, I think you're right. I mean, for the first time and a long time, we've had this alternative, right? Cash. You can have money and treasury bills and earn five percent, five and a quarter percent. And we haven't had that for 15 years. And now you have it. So there's comfort there, money market funds, yielding more than

5%. There's comfort there. People, you know, your cash has earned you nothing for over a decade. So there's comfort there, but what we are seeing is incremental flows into the intermediate term, more so, you know, our intermediate five to 10 year corporate bond, ETF is our leader in fixed income this year. I suspect it's advisor led because an advisor that really sees the big picture realizes that the difference between a money market fund where you get that yield on a daily basis, but you'll get that yield as long as it's there and then it you won't get it. Whereas an intermediate at bond with a six, seven year duration, that's an asset that can serve as a ballast against other risk assets. It'll tend to not correlate with equities. If rates go down, its value will go up.

And so there's a difference there. You're actually, you know, you're buying the bonds instead of renting a short-term rate that can be ephemeral move up and down. Yeah, that's a problem. It is because not every investor understands that. They think that all yields are equal, but term, you know, term bonds, it's a longer duration play. It's going to be stickier in its return. You know, there are single bond ETS now that's out there. Three months, six months, one year, two year, and you can own it in an ETF. Right. But they're on the run.

Right. So literally every month or whenever there's a new issue, they roll into the new issue. And if the yield is lower, you're getting a lower yield. You're not having a one year, if you own a one year, a single bond ETF, you're not buying that yield that you bought for one year. You're actually only buying it for the period. And I believe they roll over every month now, the year one year. So it is an issue. People don't quite understand how these things actually work.

So you have to be kind of comfortable with that. It got off to a fixed income got off to a big lead in the first quarter and part of the second quarter. And yet the flows have sort of slowed down a little bit since then. I think yields have continued to migrate up. And so in many cases you've had negative returns, right? So you might have some reaction. Prices down. So yields up, prices down.

So year to date, people might be, oh, I bought this thing for its coupon. you have a short-term price depreciation and they move out. But, you know, we are constructive on it. You know, Schwab's Center for Financial Research, Kathy Jones is our fixed-income strategist. She looks at term rates. She looks at the Fed cycle. Generally, when the Fed nears the end of a cycle,

you'll hit peak term rates, aka where we are now. And then if she looks at the balance sheets of American corporations, she thinks they're pretty well situated, even for a soft landing, even for a potential recessionary environment, corporate balance sheets are healthy. And so we don't mind investment-grade credit.

So she would endorse something like a 5-3-quarter percent intermediate bond ETF. Well, how about equities? I mean, what I noticed here in the third quarter is everything's sort of flattished to down. The S&P is basically flat. Russell 2000 is not doing great, down about 2%. Everybody just wants big cap tech, it seems like. So I'm flattished to down in the third quarter, still up on the year. Yep.

So I don't know. What are you telling people about equities? Yeah, you know, we just think broad diversification is the way to go for long term. I would say we observe most American investors are under-allocated towards international. The fundamental valuations in international developed markets are more attractive than they are here in the U.S. And if you're really worried about that narrow leadership, they're all alternative indices, right? You can go small cap, you can go mid-cap, you can move away from that, you know, really the skyrocketing large-cap stocks that have led most of the U.S. rally year to date. One of the things I've always loved about Schwab is you guys have always really encouraged long-term thinking and investing.

I never hear of you jumping on any fads. You were late to the ETF game, and when you finally went into the ETF game, you went into straight indexing and immediately became one of the top 10 players just because of the distribution network that you have. So my hat's off to you and your founder for constantly sticking to the long-term goal. But how do you keep people on that? Don't you get panicky calls? I mean, October last year, we're approaching the one-year anniversary when we were down 20% on the year, 22, 25%. We ended down 20% last year. What was that like last year?

You were getting panicky calls from people? Advisors do. Schwab advisors, you know, we host over 15,000 independent advisors at Custody at Schwab, too. It's a great endorsement to have an advisor because that's really the role of an advisor is when times get tough, when things get volatile, when your emotion makes you want to act. You know, they can calm you and really remind you, hey, what can you can control? control costs in your portfolio. Let's look. Are there are there ways we can go into funds that have a lower cost than where you've been? Let's look at your tax strategies. Those are things you can move the lever on, but trying to time the market and letting your emotions rule your

trading generally does not work out. You know, it's funny. Somebody wants to me, financial advisors have become the new therapists. And they have. I mean, in a situation like that, you are a therapist to a certain extent, telling people, you know, what would be sound for them mentally as well as financially what to do. Do you feel the need for financial advisors is broadening out? Is there more need for one than there used to be? Even with self-directed investors? Yeah, I would say so because, you know, we've been a part of bringing a lot of technology to investors, right?

You can go on Schwab.com and you can trade. You know, you can enroll in our robo advisor and get asset allocation. You can do a lot of things yourself with technology. But a human relationship, you know, to get you to think about life cycle stages, you know, whether it's saving for college, retirement. You know, they're going to have more a bigger picture knowledge and be able to, to explore things with you. So we think there's a huge value to having an advisor relationship. I tell people all the time, I'm a classic self-directed advisor. I'm in

this business. I do it for a living and yet as I get older there are things that I would like to talk to financial advisors about. For example, annuities, you know, 30 years ago we thought annuities were a joke because there were things that were sold, not bought, they were 5% commissions, no value, and now things have changed a little. There may be situations where annuities make some sense for people. I'd like to talk to somebody about that. I'm pretty good, but I still know I might miss something. And long-term health care, proper 401k allocation, tax advantage versus, you know, tax sheltered accounts.

There's a lot of stuff, and I'm really good at this, and sometimes I wonder about what the right answer is. So my answer to everybody is, when you get up to, if you have substantial assets, if you have a house with some stocks and bonds, those are assets. And you need to talk about estate planning. Big thing in my generation. It's shocking. I'm almost 68 years old. How many people my age, I know have money that have houses and 401Ks, they don't have a will. They don't have a living will.

If they get hit by a bus, they're in serious trouble. The whole thing is a mess. Nobody even knows where the box is that says what the assets are, let alone where the will is. And I tell people, you are out of your mind. You need to talk to a lawyer. You need to get a will, a living will, and a financial plan together. Yeah, starting with that. And when they say, what's an asset?

I say, if you have a house with substantial equity in it and you have any kind of 401k, I don't care, it's $50,000, $100,000, $1,000, $1,000, $2 million, whatever, those are assets. And you want to throw it away or not have your loved ones be able to find it if something happens to you? That is really irresponsible. Yeah. And the counter doing it well, it really does serve the family. I unfortunately lost my parents. They had a plan. They had a trust. It made my life and the lives of my three siblings a lot easier to navigate. And even then, we needed some professional help along the way. So talking to an advisor, if you want to walk you over the Schwab branch around the corner. But even, well, would you advise on something like setting up a trust for example? Absolutely. Yeah. See, there's a really tough decision. Like the trust can make it potentially much easier for errors to distribute, particularly, particularly for. the person who is actually in charge of the estate to distribute the assets. And yet very few people ever think about these kinds of things.

This is why I tell people, if you're in that kind of situation with assets, then it's worth it to bring in a financial advisor. And people say, well, they're expensive. I say, listen, look at a fee-based financial advisor. You can look at an asset by management, under management portion. They'll do that too. But don't do nothing. Doing nothing is not an option.

You might want to save money by going to a fee-based one, fine. But as long as they're reputable, doing nothing is not an option. It's amazing to me how many people don't understand that. We've kind of gotten off on a little bit of a tangent here because it's so interesting having you here, DJ. I want to emphasize DJ talks to all the Schwab offices. He's sort of the liaison for Schwab with all the offices around here. He's not just the ETF guy, so I'm going to leave it right here. DJ, thank you very much for joining us.

It's a pleasure. DJ Attorney at Schwab Asset Management. And thank you, everyone, for listening to the ETF Edge podcast. InvescoQQQ believes new innovations create new opportunities. Become an agent of innovation. InvescoQQQQ, Invesco Distributors, Inc.