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.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.