Invesco Q2 ETF Assets Leap 32% on Strong QQQM Inflows
- The QQQ owner said its ETF/index unit assets rose to $546.9B.
- The unit generated $40.9B in market gains, 12 times that of last year’s Q2.
- Overall net inflows dropped 23% from Q1, in part due to RSP outflows.
Invesco Ltd. (IVZ), the fourth-largest ETF issuer, reported that assets in its business unit that includes exchange-traded funds leapt 32% during the second quarter, compared with the same quarter last year, as equity markets jumped.
The unit’s assets rose to $546.9 billion from $415.1 billion in last year’s second quarter, the company said in a statement. Compared with this year’s first quarter, assets swelled 11% from $491 billion. That business doesn’t include results from Invesco’s biggest fund, the $358.1 billion Invesco QQQ Trust (QQQ), which doesn’t produce management fees due to its unit investment trust structure.
As the S&P 500 gained 11% during the quarter, Invesco’s ETF and index business generated $40.6 billion in market gains, nearly 12 times the $3.8 billion the business created during last year’s second quarter. In this year’s first quarter, the business suffered a loss of $10.9 billion as markets tumbled amid President Donald Trump ramping up a series of tariff battles with trading partners around the globe.
The Atlanta-based company produces income from fees on the 242 ETFs it manages.
QQQM Pulls in Big Money
While QQQ doesn’t generate fees, a copycat that does, the $55.1 billion Invesco NASDAQ 100 ETF (QQQM), pulled in a net $5.6 billion in flows during the quarter. The company said last week it aims to restructure QQQ as an open-ended fund and generate fees.
The company highlighted “Another strong quarter with annualized organic growth of +10% and continued market share gains with strength across geographies,” in a slide presentation.
Overall, the ETF and index business’s net inflows fell 23% to $12.6 billion from the first quarter and were little changed year over year. This was partially due to net outflows of $2.9 billion from the company’s second-largest fund, the $73.9 billion Invesco S&P 500 Equal Weight ETF (RSP).
That fund, which tracks an equal-weighted index of S&P 500 companies, charges a 0.2% management fee, compared with the passive, market-cap weighted, $701.8 billion Vanguard S&P 500 ETF (VOO), the world’s largest ETF, which charges 0.03%.
QQQM Second-Quarter Flows
Source: etf.com and FactSet Data
ETF Issuers Boosted by Market Gains
Other publicly traded ETF issuers reported that second-quarter market gains boosted their businesses. The largest, Blackrock Inc. (BLK), last week said its iShares ETF franchise attracted $85 billion in net flows during the second quarter and ETF assets under management reached $4.7 trillion.
Charles Schwab Corp. (SCHW), the fifth-largest U.S. ETF issuer, said assets in its exchange-traded funds rose 26% during the second quarter.
WisdomTree Inc. (WT) is the final large ETF issuer set to report second-quarter earnings, which it will do Friday, July 25.
