Latest news with #InvescoLtd
Bloomberg
a day ago
- Business
- Bloomberg
Invesco Wants to Break Open Its $355 Billion Piggy Bank
Welcome to ETF IQ, a weekly newsletter dedicated to the $14 trillion global ETF industry. I'm Bloomberg News reporter and anchor Katie Greifeld. It's one of the biggest ironies in asset management: famed tech fund QQQ is the most profitable product in the $11.7 trillion industry, yet Invesco Ltd. earns next to nothing for running it. Now, the firm is asking shareholders to change that.
Yahoo
2 days ago
- Business
- Yahoo
Invesco Aims to Unlock QQQ's Hundreds of Millions in Profit
(Bloomberg) -- It's a quirk in the booming world of passive investing: Famed tech fund QQQ is the most profitable offering in the $11.7 trillion ETF industry, but Invesco Ltd. earns virtually nothing from running it. Now the asset manager is asking shareholders to change that. The Dutch Intersection Is Coming to Save Your Life Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests Mumbai Facelift Is Inspired by 200-Year-Old New York Blueprint LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say Invesco filed a proxy statement with the Securities and Exchange Commission on Thursday asking owners of the Invesco QQQ Trust Series 1 for their blessing to convert it into an open-ended fund from a unit investment trust, a little-used structure dating back to the birth of the first exchange-traded funds in the 1990s. It's a seemingly small ask with enormous consequences for Invesco. With $355 billion in assets and a 0.2% expense ratio, a back-of-the-envelope calculation shows that QQQ generates roughly $711 million in annual fee revenue — more than any other ETF, data compiled by Bloomberg show. But in its current setup as a unit investment trust, the bulk of that is divided between the fund's trustee — the Bank of New York Mellon — and the provider of the underlying index, which is Nasdaq. As mandated by the fund's prospectus, any remaining revenue must be spent on marketing QQQ. That leaves essentially nothing for Invesco, the fund's sponsor. Theoretically, that dynamic would change if shareholders approve the firm's request. And that would be a win-win for both Invesco and QQQ holders, according to Bloomberg Intelligence. 'They have basically been running this fund, which is the greatest ever, as a charity,' said ETF analyst Athanasios Psarofagis, referring to QQQ's nearly 1,260% return since its 1999 inception. 'If they can re-purpose that, it could free up revenue to invest in other areas, like new products.' Converting into an open-ended fund may open the door to changing the revenue breakdown, according to Psarofagis. Invesco shares rose as much as 11% on Friday to the highest level since February. Invesco will lower QQQ's expense ratio by two basis points to 0.18% if the item, along with two others, are approved, according to the filing. Should the vote pass, Invesco will also replace BNY Mellon as the fund's trustee with a board of individuals, and appoint Invesco Capital Management as QQQ's investment adviser, a Friday press release said. Unit investment trusts don't have investment advisers, so no firm is currently performing that role. The firm is calling for a special meeting on Oct. 24 to hold the vote. Invesco declined to comment on Thursday beyond the filing. (Updates with Friday's share move for Invesco and press release.) What the Tough Job Market for New College Grads Says About the Economy How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All Godzilla Conquered Japan. Now Its Owner Plots a Global Takeover A Rebel Army Is Building a Rare-Earth Empire on China's Border Why Access to Running Water Is a Luxury in Wealthy US Cities ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Invesco Aims to Unlock Hundreds of Millions in Profit From QQQ
(Bloomberg) -- It's a quirk in the booming world of passive investing: Famed tech fund QQQ is the most profitable offering in the $11.7 trillion ETF industry, but Invesco Ltd. earns virtually nothing from running it. Now the asset manager is asking shareholders to change that. The Dutch Intersection Is Coming to Save Your Life Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say Invesco filed a proxy statement with the Securities and Exchange Commission on Thursday asking owners of the Invesco QQQ Trust Series 1 for their blessing to convert it into an open-ended fund from a unit investment trust, a little-used structure dating back to the birth of the first exchange-traded funds in the 1990s. It's a seemingly small ask with enormous consequences for Invesco. With $355 billion in assets and a 0.2% expense ratio, a back-of-the-envelope calculation shows that QQQ generates roughly $711 million in annual fee revenue — more than any other ETF, data compiled by Bloomberg show. But in its current setup as a unit investment trust, the bulk of that is divided between the fund's trustee — the Bank of New York Mellon — and the provider of the underlying index, which is Nasdaq. As mandated by the fund's prospectus, any remaining revenue must be spent on marketing QQQ. That leaves essentially nothing for Invesco, the fund's sponsor. Theoretically, that dynamic would change if shareholders approve the firm's request. And that would be a win-win for both Invesco and QQQ holders, according to Bloomberg Intelligence. 'They have basically been running this fund, which is the greatest ever, as a charity,' said ETF analyst Athanasios Psarofagis, referring to QQQ's nearly 1,260% return since its 1999 inception. 'If they can re-purpose that, it could free up revenue to invest in other areas, like new products.' Invesco will lower QQQ's expense ratio by two basis points to 0.18% if the item, along with two others, are approved, according to the filing. The firm is calling for a special meeting on Oct. 24 to hold the vote. Converting into an open-ended fund may open the door to changing the revenue breakdown, according to Psarofagis. Invesco declined to comment beyond the filing. What the Tough Job Market for New College Grads Says About the Economy How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All Forget DOGE. Musk Is Suddenly All In on AI The Quest for a Hangover-Free Buzz How Hims Became the King of Knockoff Weight-Loss Drugs ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
2 days ago
- Business
- Bloomberg
Invesco Aims to Unlock Hundreds of Millions in Profit From QQQ
It's a quirk in the booming world of passive investing: Famed tech fund QQQ is the most profitable offering in the $11.7 trillion ETF industry, but Invesco Ltd. earns virtually nothing from running it. Now the asset manager is asking shareholders to change that. Invesco filed a proxy statement with the Securities and Exchange Commission on Thursday asking owners of the Invesco QQQ Trust Series 1 for their blessing to convert it into an open-ended fund from a unit investment trust, a little-used structure dating back to the birth of the first exchange-traded funds in the 1990s.
Yahoo
26-06-2025
- Business
- Yahoo
How Is Invesco's Stock Performance Compared to Other Financial Stocks?
Invesco Ltd. (IVZ), headquartered in Atlanta, Georgia, is a publicly owned investment manager. Valued at $6.8 billion by market cap, the company offers equity, fixed income, separate accounts, exchange traded, collective, and balance mutual funds. Companies worth $2 billion or more are generally described as 'mid-cap stocks,' and IVZ perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the asset management industry. IVZ's strengths lie in its diverse investment capabilities which cater to various investor preferences and market conditions. The firm's adaptability is demonstrated by its offering of both active and passive products. With a presence in over 20 countries and clients in 120 nations, Invesco's global reach diversifies revenue streams and provides a broad market perspective. Its strong brand and reputation enable it to attract and retain clients worldwide. Tesla's Robotaxis Reportedly Sped and Veered Into the Wrong Lanes. Does This Crush the Bull Case for TSLA Stock? 1 Dividend Stock to Buy Yielding Over 7% Up 93% in 2025, Palantir Stock Is Too Hot to Handle Here Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Despite its notable strength, IVZ slipped 22% from its 52-week high of $19.55, achieved on Jan. 30. Over the past three months, IVZ stock declined 4.5%, underperforming the Financial Select Sector SPDR Fund's (XLF) 1.9% gains during the same time frame. In the longer term, shares of IVZ dipped 12.8% on a YTD basis but climbed 1.1% over the past 52 weeks, underperforming XLF's YTD gains of 6.4% and 24.5% returns over the last year. To confirm the bearish trend, IVZ has been trading below its 200-day moving average since early March. However, the stock is trading above its 50-day moving average since early May, with slight fluctuations. On Apr. 22, IVZ shares closed up more than 8% after reporting its Q1 results. Its adjusted EPS of $0.44 beat Wall Street expectations of $0.39. The company's revenue stood at $1.5 billion, up 3.7% year over year. IVZ's rival, Cohen & Steers, Inc. (CNS) shares have lagged behind the stock, with 17.9% losses on a YTD basis but outpaced the stock with a 6.6% uptick over the past 52 weeks. Wall Street analysts are cautious on IVZ's prospects. The stock has a consensus 'Hold' rating from the 17 analysts covering it, and the mean price target of $16.05 suggests a potential upside of 5.2% from current price levels. On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
