Five risks to know when investing in ETFs (2024)

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Past performance is not a guarantee of future results.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional/financial consultant before making any investment decisions.

The opinions expressed are those of the author, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.

There are risks involved with investing in ETFs, including possible loss of money. Index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.

The Industry Classification Benchmark (ICB) is a system for assigning all public companies to appropriate subsectors of specific industries.

The S&P 500® Index is a broad-based, market-capitalization-weighted index of 500 of the largest and most widely held stocks in the United States.

The technology select sector index is a modified capitalization-weighted index representing the performance of technology companies that are components of the S&P 500 Index.

The Magnificent Seven stocks are a group of high-performing and influential companies in the U.S. stock market: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, and Tesla.

Invesco does not offer tax advice. Investors should consult their own tax professionals for information regarding their own tax situations.

Investors should be aware of the material differences between mutual funds and ETFs. ETFs generally have lower expenses than actively managed mutual funds due to their different management styles. Most ETFs are passively managed and are structured to track an index, whereas many mutual funds are actively managed and thus have higher management fees. Unlike ETFs, actively managed mutual funds have the ability react to market changes and the potential to outperform a stated benchmark. Since ordinary brokerage commissions apply for each ETF buy and sell transaction, frequent trading activity may increase the cost of ETFs. ETFs can be traded throughout the day, whereas, mutual funds are traded only once a day. While extreme market conditions could result in illiquidity for ETFs. Typically they are still more liquid than most traditional mutual funds because they trade on exchanges. Investors should talk with their financial professional regarding their situation before investing.

This content should not be construed as an endorsem*nt for or recommendation to invest in Microsoft Corp or Apple Inc. Neither Microsoft Corp nor Apple Inc are affiliated with Invesco. Only 2 of 101 underlying Invesco QQQ ETF fund holdings are featured. Holdings are subject to change and are not buy/sell recommendations. See invesco.com/qqq for current holdings. As of 2/15/2024, Microsoft Corp and Apple Inc made up 8.85% and 8.33% respectively, of Invesco QQQ ETF.

Five risks to know when investing in ETFs (2024)
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