Core Insights - The Invesco S&P 500 Equal Weight Energy ETF (RSPG) is a passively managed ETF launched on November 1, 2006, aimed at providing broad exposure to the Energy - Broad segment of the equity market [1] - The Energy - Broad sector is currently ranked 16th among the 16 Zacks sectors, placing it in the bottom 0% [2] Fund Overview - RSPG has over $428.33 million in assets, making it one of the larger ETFs in the Energy - Broad segment [3] - The ETF seeks to match the performance of the S&P 500 Equal Weight Energy Plus Index, which equally weights stocks in the energy sector of the S&P 500 Index [3] Cost Structure - The annual operating expense ratio for RSPG is 0.40%, positioning it as one of the cheaper options in the ETF space [4] - The ETF has a 12-month trailing dividend yield of 2.64% [4] Sector Exposure and Holdings - RSPG has a 100% allocation in the Energy sector, providing concentrated exposure [5] - Valero Energy Corp (VLO) constitutes approximately 4.86% of total assets, with the top 10 holdings accounting for about 46.80% of total assets under management [6] Performance Metrics - As of July 24, 2025, RSPG has gained about 0.82% year-to-date but is down approximately -2.93% over the past year [7] - The ETF has traded between $65.43 and $86.09 in the last 52 weeks, with a beta of 0.87 and a standard deviation of 23.08% over the trailing three-year period [7] Alternatives - RSPG carries a Zacks ETF Rank of 3 (Hold), indicating it is a viable option for investors seeking exposure to Energy ETFs [8] - Other alternatives include the Vanguard Energy ETF (VDE) with $7.15 billion in assets and the Energy Select Sector SPDR ETF (XLE) with $27.57 billion in assets, both of which have lower expense ratios [9]

Group 1 - The Invesco S&P MidCap Momentum ETF (NYSEARCA: XMMO) consists of 80 stocks from the S&P MidCap 400 Index that have shown the best price returns over the past twelve months [1] - The ETF has been following this strategy for six years and has delivered significant performance results [1] Group 2 - The Sunday Investor has completed all educational requirements for the Chartered Investment Manager designation and is on track to become a licensed options and derivatives trading advisor [1] - The Sunday Investor focuses on U.S. Equity ETFs and maintains a comprehensive database tracking nearly 1,000 funds [1]

Core Viewpoint - Invesco Ltd. is expanding its active fixed income platform with the launch of two new actively managed ETFs, the Invesco Core Fixed Income ETF (GTOC) and the Invesco Intermediate Municipal ETF (INTM), enhancing investor options in the fixed income market [2][6]. Company Overview - Invesco Ltd. manages over $491 billion globally across various investment vehicles, including ETFs, mutual funds, and separately managed accounts (SMAs) [2][7]. - The firm has a strong track record in active fixed income management, with a dedicated team of 182 members averaging 18 years of industry experience [3]. Product Details - GTOC is designed as a core portfolio building block, investing in high-quality U.S. investment grade fixed income instruments [9]. - INTM aims to provide federally tax-exempt income by investing at least 80% of its assets in investment grade municipal bonds rated BBB or higher, focusing on high credit quality and intermediate duration [9]. Market Trends - The launch of these ETFs reflects the growing client demand for fixed income and active ETFs, which are significant trends in the current market [5]. - Invesco's strategy aligns with evolving investor preferences for both active and passive investment strategies [5].

Core Insights - The Invesco S&P 500 Equal Weight Industrials ETF (RSPN) is designed to provide broad exposure to the Industrials sector, launched on November 1, 2006 [1] - The ETF has gained popularity among both institutional and retail investors due to its low cost, transparency, flexibility, and tax efficiency [1][2] - RSPN has amassed assets over $672.39 million, making it an average-sized ETF in its category [3] Index Details - RSPN aims to match the performance of the S&P 500 Equal Weight Industrials Index, which equally weights stocks in the industrials sector of the S&P 500 Index [3] - The ETF has a 100% allocation in the Industrials sector, providing diversified exposure [5] Costs - The annual operating expenses for RSPN are 0.40%, which is competitive with peer products [4] - The ETF has a 12-month trailing dividend yield of 0.92% [4] Performance and Risk - Year-to-date, RSPN has increased by approximately 10.45%, and it is up about 17.46% over the last 12 months as of July 23, 2025 [7] - The ETF has a beta of 1.09 and a standard deviation of 18.05% for the trailing three-year period, indicating effective diversification of company-specific risk [7] Alternatives - RSPN carries a Zacks ETF Rank of 3 (Hold), suggesting it is a viable option for investors seeking exposure to the Industrials sector [8] - Other alternatives include the Vanguard Industrials ETF (VIS) and the Industrial Select Sector SPDR ETF (XLI), with VIS having $6 billion in assets and an expense ratio of 0.09%, while XLI has $22.49 billion in assets and charges 0.08% [9]

Core Insights - The Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD) is a passively managed ETF launched on November 1, 2006, providing broad exposure to the Consumer Discretionary sector [1] - The ETF has assets over $207.32 million and aims to match the performance of the S&P 500 Equal Weight Consumer Discretionary Index [3] - The ETF has an annual operating expense of 0.40% and a 12-month trailing dividend yield of 0.70% [4] Sector Overview - The Consumer Discretionary - Broad sector is ranked 11th among 16 Zacks sectors, placing it in the bottom 31% [2] - The ETF offers approximately 100% allocation in the Consumer Discretionary sector, providing diversified exposure [5] Holdings and Performance - Carnival Corp (CCL) accounts for about 2.33% of total assets, with the top 10 holdings representing approximately 21.73% of total assets [6] - The ETF has returned roughly 5.65% year-to-date and 15.50% over the past year, with a trading range between $44.09 and $56.27 in the last 52 weeks [7] Alternatives - The Invesco S&P 500 Equal Weight Consumer Discretionary ETF has a Zacks ETF Rank of 4 (Sell), indicating it may not be the best choice for investors seeking exposure to this sector [8] - Alternatives include the Vanguard Consumer Discretionary ETF (VCR) with $6.29 billion in assets and an expense ratio of 0.09%, and the Consumer Discretionary Select Sector SPDR ETF (XLY) with $22.97 billion in assets and an expense ratio of 0.08% [9]

Invesco Ltd. (NYSE:IVZ) Q2 2025 Earnings Call July 22, 2025 9:00 AM ET Company Participants Andrew Ryan Schlossberg - President, CEO & Director Gregory Wade Ketron - Head of Investor Relations & Treasury Laura Allison Dukes - Senior MD & CFO Conference Call Participants Alexander Blostein - Goldman Sachs Group, Inc., Research Division Benjamin Elliot Budish - Barclays Bank PLC, Research Division Brian Bertram Bedell - Deutsche Bank AG, Research Division Glenn Paul Schorr - Evercore ISI Institutional Equitie ...

Core Insights - Invesco's second-quarter 2025 adjusted earnings were 36 cents per share, missing the Zacks Consensus Estimate of 40 cents and reflecting a 16.3% decline from the prior-year quarter due to higher adjusted operating expenses, although adjusted net revenues increased [1][8] - The net loss attributable to common shareholders was $12.5 million or 3 cents per share, compared to a net income of $132.2 million or 29 cents per share in the same quarter last year [2] Adjusted Revenues & Expenses - Adjusted net revenues for the quarter were $1.10 billion, up 1.7% year over year, but missed the Zacks Consensus Estimate of $1.11 billion [3][8] - Adjusted operating expenses rose to $760.2 million, an increase of 1.3%, while the adjusted operating margin improved to 31.2% from 30.9% a year ago [3][8] Assets Under Management (AUM) - As of June 30, 2025, AUM reached $2 trillion, marking a 16.6% increase year over year, with average AUM at $1.9 trillion, up 13.7% [4][8] - The company experienced long-term net inflows of $15.6 billion during the quarter, primarily driven by ETFs, China joint ventures, India, and fixed income [4] Balance Sheet - As of June 30, 2025, cash and cash equivalents stood at $922.7 million, up from $878.5 million a year earlier, while long-term debt was $1.88 billion [5] Share Repurchases - In the reported quarter, Invesco repurchased 1.7 million shares for a total of $25 million [6] Market Outlook - The macroeconomic environment is expected to keep Invesco's net flows volatile, but strategic initiatives and partnerships are anticipated to support financial performance [7]

Core Insights - Invesco reported $1.1 billion in revenue for Q2 2025, a year-over-year increase of 1.7%, but the EPS decreased to $0.36 from $0.43 a year ago, indicating a decline in profitability [1] - The revenue fell short of the Zacks Consensus Estimate by -0.54%, and the EPS was -12.2% below the consensus estimate [1] Financial Performance Metrics - Invesco's shares have returned +35.3% over the past month, significantly outperforming the Zacks S&P 500 composite's +5.9% change, and the stock holds a Zacks Rank 1 (Strong Buy) [3] - Assets Under Management (AUM) for ETFs and Index reached $546.90 billion, exceeding the average estimate of $512.82 billion [4] - Total average AUM was reported at $1,897.40 billion, higher than the estimated $1,855.71 billion [4] - AUM for Fundamental Fixed Income was $301.60 billion, surpassing the estimate of $297.02 billion [4] - AUM for Private Markets was $131.20 billion, above the average estimate of $129.82 billion [4] - AUM for China JV & India was $120.20 billion, compared to the estimate of $114.48 billion [4] - AUM for Multi-Asset/Other was $64.10 billion, exceeding the estimate of $60.48 billion [4] - AUM for Global Liquidity was $196.40 billion, slightly below the estimate of $197.85 billion [4] - AUM for QQQs was $352.70 billion, significantly higher than the estimate of $314.54 billion [4] - Average AUM for ETFs & Index was $509.70 billion, above the estimate of $501.91 billion [4] Revenue Breakdown - Operating revenues from Other revenues were $48.2 million, below the estimate of $53.25 million, but showed a +2.1% year-over-year change [4] - Service and distribution fees generated $363.8 million, lower than the estimated $375.77 million, with a year-over-year change of +0.6% [4] - Performance fees were reported at $2.6 million, significantly below the average estimate of $8.99 million, reflecting a -70.1% year-over-year decline [4]

Financial Data and Key Metrics Changes - The company reported a record total assets under management (AUM) of slightly over $2,000 billion, which is $157 billion or 8% higher than the end of the first quarter and $286 billion or 17% higher than the end of the second quarter of 2024 [29] - Average long-term AUM increased by 1% over the last quarter and 12% over the second quarter of last year, reaching $1,340 billion [29] - Adjusted diluted earnings per share for the second quarter were $0.36, with net revenues of $1,100 million, which is $19 million higher than the same quarter last year [31][39] Business Line Data and Key Metrics Changes - The company generated $15.6 billion in net long-term asset inflows, representing a 4.7% annualized growth rate [11] - The global ETFs and index platform reported 10% annualized organic growth, with $12.6 billion of long-term net inflows in the quarter [12] - Fundamental fixed income garnered nearly $3 billion of net long-term inflows, while private markets experienced net outflows of $2 billion [30][24] Market Data and Key Metrics Changes - The Asia Pacific and EMEA regions accounted for 40% of overall long-term client AUM, generating $31 billion of net flows in the first half of 2025 [12] - The China joint venture and India capabilities delivered $5.6 billion of net long-term inflows, with a record high AUM of $105 billion in the China JV [23] - The company saw net outflows of $3.6 billion in fundamental equities, particularly from U.S. clients, while EMEA and Asia Pacific clients showed positive flows [24][25] Company Strategy and Development Direction - The company is focused on enhancing client outcomes, improving operating leverage, and strengthening its balance sheet [5] - A significant partnership with MassMutual and Barings aims to leverage private credit strengths and expand product offerings [6][8] - The company is pursuing a hybrid solution for its platforms, optimizing outcomes for clients and enhancing operational capabilities [42] Management's Comments on Operating Environment and Future Outlook - Management noted that the second quarter experienced pronounced market volatility, but strong momentum carried into July, leading to a global rebound for equities [11] - The company remains committed to driving profitable growth and enhancing capital returns to shareholders, with a focus on both organic and inorganic growth opportunities [61][99] - Management expressed optimism about the potential for private markets in defined contribution plans, contingent on regulatory changes [86] Other Important Information - The company repurchased $1 billion of preferred stock held by MassMutual, funded by bank term loans, which is expected to strengthen the balance sheet [31][45] - The net revenue yield for the second quarter was 23.2 basis points, indicating a smaller decline than in prior quarters, suggesting potential stabilization [35] Q&A Session Summary Question: Why is the company proposing changes to the QQQ structure now? - Management indicated that the proposal aims to modernize the structure to enhance outcomes for clients and shareholders, as the current unit trust structure has been in place since 1999 [53] Question: How will the changes impact marketing expenses and incremental margin? - The anticipated marketing budget for the trust is $60 million to $100 million, translating to 2 to 3 basis points of annual assets, with an expected addition of approximately four basis points to net revenue and operating income if approved [55] Question: How does the company balance deleveraging with growth? - Management emphasized that both growth and deleveraging are priorities, with a focus on improving operating cash flow to provide flexibility for both objectives [60] Question: What is the company's strategy for private markets? - The company is focused on partnerships and acquisitions to enhance its private markets capabilities, with a strong emphasis on organic growth as well [78] Question: What are the expectations for private markets in defined contribution plans? - Management believes there is potential for private markets in defined contribution plans, contingent on regulatory changes, and is prepared to meet market demand with existing capabilities [86]

Financial Data and Key Metrics Changes - The company reported a record total assets under management (AUM) of slightly over $2,000 billion, which is $157 billion or 8% higher than the end of the first quarter and $286 billion or 17% higher than the end of the second quarter of 2024 [28] - Average long-term AUM increased by 1% over the last quarter and 12% over the second quarter of last year, reaching $1,340 billion [28] - Adjusted diluted earnings per share were $0.36 for the second quarter, with net revenues of $1,100 million, which is $19 million higher than the same quarter last year [30][38] Business Line Data and Key Metrics Changes - The company generated $15.6 billion in net long-term asset inflows, representing a 4.7% annualized growth rate [10] - The global ETFs and index platform reported 10% annualized organic growth, with $12.6 billion of long-term net inflows in the quarter [11] - Fundamental fixed income garnered nearly $3 billion of net long-term inflows, while private markets experienced net outflows of $2 billion [29][22] Market Data and Key Metrics Changes - The Asia Pacific and EMEA regions accounted for 40% of overall long-term client AUM, generating $31 billion of net flows in the first half of 2025 [11] - The China joint venture and India capabilities delivered $5.6 billion of net long-term inflows, with a record high AUM of $105 billion in the China JV [21] - The company saw net outflows of $3.6 billion in fundamental equities, although there were positive flows from EMEA and Asia Pacific [22][23] Company Strategy and Development Direction - The company is focused on enhancing client outcomes, improving operating leverage, and strengthening its balance sheet [4] - A partnership with MassMutual and Barings aims to leverage private credit strengths and expand product offerings in the U.S. Wealth channel [6] - The company is pursuing a hybrid approach to investment management, utilizing platforms from both State Street and BlackRock to optimize outcomes for clients [40] Management's Comments on Operating Environment and Future Outlook - Management noted that the second quarter experienced pronounced market volatility, but strong momentum carried into July, leading to a global rebound for equities [10] - The company is optimistic about its ability to navigate market cycles due to a diversified asset mix and strong geographic presence [25][32] - Management emphasized the importance of improving operating cash flow to balance growth and deleveraging efforts [59][62] Other Important Information - The company completed the repurchase of $1 billion of preferred stock held by MassMutual, funded by bank term loans, which is expected to reduce preferred dividends significantly [30][44] - The company intends to continue common share repurchases and aims for a total payout ratio of near 60% from 2025 [45] - The filing of a preliminary proxy statement seeks approval to change the operational structure of the QQQ from a unit investment trust to an open-end fund ETF [35] Q&A Session Summary Question: Why is the company proposing changes to the QQQ structure now? - Management indicated that the proposal aims to modernize the structure to enhance outcomes for clients and shareholders, reflecting changes in market conditions since the QQQ was launched in 1999 [52][53] Question: How will the changes impact marketing spend and incremental margin? - The anticipated marketing budget for the trust is between $60 million to $100 million, translating to 2 to 3 basis points of annual assets, with an expected addition of four basis points to net revenue and operating income if approved [55] Question: How does the company balance deleveraging with growth? - Management stated that both growth and deleveraging are priorities, with a focus on improving operating cash flow to provide flexibility for growth initiatives [59][62] Question: What is the company's strategy for private markets? - The company is focused on partnerships and acquisitions to enhance its private markets capabilities, with a strong emphasis on organic growth as well [76] Question: How does the company view the potential for private markets in the 401(k) space? - Management believes there is promise for private markets in defined contribution plans, contingent on regulatory changes and market demand [84]