Core Viewpoint - The Invesco KBW Bank ETF (KBWB) achieved a 33% return in 2025, largely unnoticed amidst the focus on AI stocks, due to its equal-weight methodology that diversified investments across 24 major U.S. banks [1] Group 1: Investment Strategy - KBWB's equal-weight approach allowed for balanced exposure across 24 banks, preventing any single institution from dominating the portfolio, which contributed to its outperformance compared to market-cap weighted ETFs like KBE and SPY [2][5] - The equal-weight structure smoothed volatility and provided consistent returns by capturing gains from both megabanks and regional banks during the banking sector's rally [5] Group 2: Market Conditions - The steepening yield curve that began in late 2025 significantly enhanced bank profitability, with the spread widening from near-zero to over 70 basis points, leading to expanded profit margins for banks [3] - Analysts predict that the favorable environment for margin expansion will continue into 2026, with a focus on monitoring the 2-10 Treasury spread for potential signals regarding bank profitability [4] Group 3: Monitoring and Rebalancing - Investors are advised to check Invesco's monthly fact sheet for changes in holdings or weightings after quarterly rebalances, as the equal-weight structure can create buying opportunities in undervalued banks [6] - The quarterly rebalancing of KBWB is crucial for understanding which banks are being adjusted in the portfolio, providing insights into market dynamics [8] Group 4: Alternative Strategies - The First Trust Nasdaq Bank ETF (FTXO) employs a smart beta methodology that ranks banks based on liquidity and fundamental metrics, offering a different selection approach compared to KBWB [7]

Core Viewpoint - Invesco's preliminary assets under management (AUM) reached $2.17 trillion in December 2025, marking a 0.7% increase from the previous month despite a decline in share price due to broader market performance [1][8] AUM Performance - Invesco reported net long-term inflows of $7.7 billion for December, with non-management fee-earning net inflows at $6.1 billion and money market net inflows at $0.7 billion [2] - The AUM was negatively impacted by unfavorable market returns, which decreased AUM by $23 billion, while foreign exchange (FX) and reinvested distributions contributed an increase of $25.4 billion [3][8] - The preliminary average total AUM for the quarter ended December 31 was $2.16 trillion, with preliminary average active AUM at $1.12 trillion [3] Breakdown by Asset Class - As of December 2025, Invesco's AUM in ETFs & Index Strategies was $630.2 billion, up 0.4% from the prior month, and Fundamental Fixed Income AUM rose 0.6% to $311.5 billion [4] - AUM under China joint venture grew by 5.4% to $132.5 billion, while Multi-Asset/Other AUM increased by 1.5% to $69.7 billion [5] - QQQ's AUM was $407.2 billion, up 1% from the previous month, while Fundamental Equities AUM declined 0.3% to $298.4 billion, and Global Liquidity AUM fell 0.3% to $189.7 billion [5] Strategic Outlook - Invesco's strategic expansion plans, strong global presence, diverse offerings, and efforts to boost operating efficiency are expected to support financial performance [6] - The reclassification of QQQ into an open-end ETF and the divestiture of a majority stake in the India business to form a joint venture are anticipated to drive revenue growth [6] - However, volatile flows and high levels of intangible assets are noted as ongoing concerns [6] Market Performance - Over the past three months, Invesco's shares have gained 19.9%, significantly outperforming the industry's increase of 2.2% [7]

Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life.Be the first to know! Sign up for Invesco US Blog and get expert investment views as they post.Disclosure for all Invesco US articles: Before investing, carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. The information provided is for educational purposes only and does not constitute a ...

Core Viewpoint - CI Global Asset Management (CI GAM) has announced an agreement to acquire the management agreements of Invesco's Canadian fund business, which has total assets under management of approximately C$26 billion, enhancing CI GAM's position in the Canadian asset management market [1][2]. Group 1: Transaction Details - CI GAM will manage 100 mutual funds and exchange-traded funds currently offered by Invesco Canada Ltd. [2] - Invesco and CI GAM will establish a long-term strategic partnership, allowing Invesco affiliates to provide portfolio management services to 63 funds with total assets of approximately C$13 billion [2]. - Following the transaction, CI GAM's total assets under management will rise to approximately C$170 billion [3]. Group 2: Strategic Implications - The acquisition will solidify CI GAM's ranking as one of the largest investment fund companies in Canada and is expected to drive continued growth [4]. - The partnership with Invesco will enhance CI GAM's product lineup, adding new strategies and capabilities, particularly in the ETF market [5][6]. - CI GAM aims to leverage the resources from this acquisition to improve service levels and investment solutions for advisors and clients [7]. Group 3: Timeline and Conditions - The transaction is anticipated to close in the second quarter of 2026, pending regulatory approvals and securityholder consent for the change of manager for the applicable funds [7].

Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life.Be the first to know! Sign up for Invesco US Blog and get expert investment views as they post.Disclosure for all Invesco US articles: Before investing, carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. The information provided is for educational purposes only and does not constitute a ...

Core Insights - Invesco Ltd. reported preliminary month-end assets under management (AUM) of $2,169.9 billion, reflecting a 0.7% increase from the previous month [1] - The firm experienced net long-term inflows of $7.7 billion during the month, with non-management fee earning net inflows of $6.1 billion and money market net outflows of $0.7 billion [1] - AUM was negatively impacted by unfavorable market returns, which decreased AUM by $23 billion, while foreign exchange and reinvested distributions increased AUM by $25.4 billion [1] AUM Breakdown - As of December 31, 2025, the total AUM was $2,169.9 billion, with specific categories as follows: - ETFs & Index Strategies: $630.2 billion - Fundamental Fixed Income: $311.5 billion - Fundamental Equities: $298.4 billion - Private Markets: $130.7 billion - China JV: $132.5 billion - Multi Asset/Other: $69.7 billion - Global Liquidity: $189.7 billion - QQQ: $407.2 billion [2] - The AUM figures for previous months were $2,154.3 billion for November 30, 2025, and $2,166.6 billion for October 31, 2025 [2] Historical Context - Approximately $15 billion in India-based AUM was reclassified to Multi-Asset/Other prior to the sale of Invesco's majority interest in October 2025, at which point these assets were removed [3] - The China JV investment capability now only represents assets under management in Invesco's China joint venture [3] Company Overview - Invesco Ltd. is a leading global asset management firm with $2.1 trillion in AUM as of September 30, 2025, serving clients in over 120 countries [4]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market engagement and confidence through various research services [1] - The Zacks Style Scores are designed to complement the Zacks Rank, providing additional metrics for stock selection [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum, with A being the highest score indicating a better chance of outperforming the market [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] Value Score - The Value Score helps investors identify undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Score assesses a company's future potential by analyzing earnings, sales, and cash flow trends [4] Momentum Score - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [5] VGM Score - The VGM Score combines the three Style Scores to highlight stocks with attractive value, growth potential, and positive momentum [6] Zacks Rank Integration - The Zacks Rank utilizes earnings estimate revisions to aid in stock selection, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.9% since 1988 [7] - There are over 800 stocks rated 1 or 2, making it essential to use Style Scores for effective selection [8] Stock to Watch: Invesco Ltd. (IVZ) - Invesco, headquartered in Atlanta, GA, has AUM of $2.1 trillion as of September 30, 2025, and operates in over 20 countries [11] - IVZ holds a 3 (Hold) rating on the Zacks Rank and has a VGM Score of A, indicating solid performance potential [11] - The stock has a Momentum Style Score of B, with an 8.8% increase in share price over the past four weeks and an upward revision in earnings estimates [12]

Group 1 - Warren Buffett, known as the Oracle of Omaha, has stepped down as CEO of Berkshire Hathaway, but his investment advice remains valuable [1] - Buffett recommends that most investors should buy and hold the S&P 500 index, with options including Vanguard S&P 500 ETF and Invesco S&P 500 Equal Weight ETF [2] - The S&P 500 index is designed to track the U.S. economy rather than the stock market, comprising approximately 500 large and economically significant U.S. businesses across major industries [3] Group 2 - The selection of stocks in the S&P 500 index is influenced by a committee, focusing on large and economically important companies rather than their current performance [4] - The index is market-cap weighted, meaning that the largest companies have the most significant impact on its performance, which can be both beneficial and detrimental [5] - Investors should consider the specific costs and benefits of the investment asset when choosing an S&P 500 index fund, with Vanguard S&P 500 ETF having a low expense ratio of 0.03% [6][7]

Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life.Be the first to know! Sign up for Invesco US Blog and get expert investment views as they post.Disclosure for all Invesco US articles: Before investing, carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. The information provided is for educational purposes only and does not constitute a ...

Core Viewpoint - Invesco is an independent investment management firm focused on enhancing the investment experience for individuals [1] Group 1 - Invesco emphasizes the importance of understanding investment objectives, risks, charges, and expenses before making investment decisions [1] - The firm provides educational information but does not offer specific investment recommendations or tax advice [1] - Invesco's opinions are based on current market conditions and may change without notice, indicating a dynamic approach to investment strategies [1] Group 2 - Invesco Distributors, Inc. serves as the US distributor for Invesco Ltd.'s retail products and collective trust funds [1] - The company operates through various affiliated investment advisers that provide advisory services without selling securities [1] - Invesco Unit Investment Trusts are distributed by Invesco Capital Markets, Inc. and other broker-dealers, highlighting the firm's extensive distribution network [1]