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Invesco, the fourth-largest U.S. ETF issuer, reported Tuesday that fourth-quarter assets rose 2.8% to $1.85 trillion due partly to investors pouring billions into its flagship $333 billion Invesco QQQ Trust (QQQ).
Total assets under management topped the $1.84 trillion average estimate of analysts surveyed by Bloomberg. AUM jumped 16% from $1.58 trillion in the previous fourth quarter, according to an earnings release. Atlanta-based Invesco's Q4 EPS of $0.52 per share topped Bloomberg's estimate of $0.47, and the company's shares rose about 9% at midday Tuesday.
Investors funneled billions into stock ETFs during the fourth quarter, aiming to take advantage of rising equity markets and pushing total U.S. inflows for the year to a record $1.12 trillion. Lager rivals BlackRock Inc. and Charles Schwab Corp. both reported jumps in fourth-quarter inflows, while flows to State Street Corp.'s SPDR unit dipped as its flagship SPDR S&P 500 ETF Trust (SPY) had outflows.
QQQ Boosts Invesco ETF Unit
A good portion of Invesco's asset growth was a result of the net $10.4 billion that investors bet on QQQ during the fourth quarter, more than three times the $2.84 billion they invested in the third quarter. It was also a big increase from the $3.81 billion they invested in 2023's fourth quarter.
QQQ reached $318.9 billion in assets, exceeding analyst expectations of $315.3 billion and climbing from $294.8 billion in the previous quarter.
The company reported net long-term inflows of $25.6 billion for the quarter, above the consensus estimate of $19.6 billion and up from the $16.5 billion in the third quarter.
The company’s other ETF and index products attracted $29.6 billion in net long-term inflows, above analyst estimates of $26.3 billion and up from the $16.5 billion in the third quarter and $6.7 billion year over year.
The better-than-expected results showcase Invesco’s expansion in passive investments as investors continue moving towards lower-cost index products, particularly in technology and growth sectors.
Breaking down regional performance, Invesco’s ETF growth spread across all three major regions, with EMEA, Americas and Asia Pacific recording net long-term inflows of $9.2 billion, $8.9 billion, and $7.5 billion respectively.