Invesco’s acquisition of PowerShares has helped the money manager capitalize on the quickly expanding exchange traded fund industry as investors seek out alternative investment strategies.
Invesco (NYSE: IVZ) shares are up more than 30% the past year.
After a rough patch, CEO Marty Flanagan took the helm at Invesco and acquired the PowerShares ETF line in 2006, reports Kathryn Spice for Morningstar.
The ETF sponsor is well-known for its Nasdaq-100 ETF, the PowerShares QQQ (NasdaqGM: QQQ), which has $35.8 billion in assets and remains the firm’s largest ETF by a wide margin. [QQQ to Welcome Back Old Friend Green Mountain]
The firm, though, has launched a series of fundamental index-based ETFs that track cash flow, book value, sales and dividends to determine a stock’s weight, instead of following traditional market-capitalization weighted indices. [A Market-Beating Fundamental ETF]
Recently, the PowerShares Fundamental ETF suite broke over the $5 billion assets under management mark. [PowerShares Fundamental ETFs Hit $5 Billion]
The PowerShares S&P 500 Low Volatility (NYSEArca: SPLV) is a popular “enhanced” or “smart-beta” offering, which garnered a huge following in the wake of a series of financial crisis that left investors seeking market exposure with low volatility. Year-to-date, SPLV has garnered $746 million in assets, according to IndexUniverse data. [Surveying Low-Volatility ETFs]
In 2013, the PowerShares Senior Loan Portfolio (NYSEArca: BKLN), the first ETF to track bank loans, has also been a popular play for high-yield and to hedge against rising interest rates. The ETF saw $3.8 billion in inflows so far this year. [Bond ETFs to Manage Interest Rate Risk]
For more information on the ETF industry, visit our current affairs category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own QQQ.