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 management [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]

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 investing [1] - The firm provides educational information but does not offer tax advice, highlighting the complexity and variability of federal and state tax laws [1] - Opinions expressed by Invesco's authors are based on current market conditions and may change without notice, indicating a dynamic investment environment [1] Group 2 - Invesco Distributors, Inc. serves as the US distributor for Invesco Ltd.'s retail products and collective trust funds [1] - Invesco Advisers, Inc. and other affiliated investment advisers provide investment advisory services without selling securities [1] - The PowerShares® brand is a registered trademark of Invesco PowerShares Capital Management LLC, indicating a diversified product offering [1]

Core Viewpoint - Invesco is an independent investment management firm focused on enhancing the investment experience for individuals, aiming to help them achieve more in life [1] Group 1: Company Overview - Invesco provides a range of investment advisory services and does not sell securities, operating through various affiliated investment advisers [1] - The firm emphasizes the importance of understanding investment objectives, risks, charges, and expenses before making investment decisions [1] Group 2: Services and Offerings - Invesco offers educational resources and expert investment views through its US Blog, encouraging individuals to stay informed about market conditions [1] - The company distributes its retail products and collective trust funds through Invesco Distributors, Inc., which is the US distributor for Invesco Ltd. [1] Group 3: Regulatory and Compliance Information - Invesco highlights that the tax information provided is general and not exhaustive, advising investors to consult legal or tax professionals for personalized advice [1] - The firm notes that opinions expressed are based on current market conditions and may change without notice, indicating a dynamic investment environment [1]

Core Viewpoint - Invesco is an independent investment management firm focused on enhancing the investment experience for individuals [1] Group 1: Company Overview - Invesco aims to help people get more out of life through its investment services [1] - The firm provides a range of investment products and advisory services [1] Group 2: Services and Offerings - Invesco offers educational resources and expert investment views through its US Blog [1] - The company emphasizes the importance of understanding investment objectives, risks, charges, and expenses before investing [1] Group 3: Legal and Tax Considerations - Invesco advises investors to consult legal or tax professionals for personalized information due to the complexity of tax laws [1] - The tax information provided by Invesco is general and not exhaustive [1]

Core Insights - In 2025, investors are focusing on companies that generate steady cash and return it to shareholders, with shareholder yield becoming a key metric for assessing commitment to investor rewards [2][3][4] Market Environment - Inflation is cooling and interest rates are easing, allowing companies that managed debt effectively during tough years to benefit from lower financing costs [3] - Geopolitical uncertainty and high stock valuations are making investors cautious about pursuing growth aggressively, leading to a preference for reliable cash returns [4] Shareholder Yield Strategy - Research indicates that shareholder-yield strategies outperform traditional high-dividend approaches, as high dividends alone do not ensure disciplined capital management [5] - Combining dividends with share buybacks and debt reduction provides a clearer picture of management's commitment to long-term value [6] Investment Opportunities - High-quality shareholder-yield companies offer a blend of consistent returns and volatility cushioning, reflecting management teams focused on long-term performance [7] - Notable companies with strong shareholder yields include: - **CION Investment Corporation (CION)**: Offers a dividend yield of approximately 14.17%, with seven dividend increases in five years and a payout ratio of 81% [8][9][10] - **Invesco (IVZ)**: Provides a dividend yield of 3.57%, with six increases in five years and a payout ratio of 44% [11][12] - **TPG RE Finance Trust (TRTX)**: Offers a dividend yield of around 10.73%, with three increases in five years and a reduction in long-term debt from $3.71 billion in 2021 to $2.83 billion in Q3 2025 [13][14][15] - **W.P. Carey (WPC)**: Provides a dividend yield of 5.38%, with 20 increases in five years despite a negative annualized growth rate of 4.78% [16][17][18]

Market Overview - U.S. stock markets are experiencing a successful year, with major indexes like the Dow, S&P 500, and Nasdaq Composite up 11.2%, 14.8%, and 18.8% respectively [2] - The technology sector, particularly driven by advancements in generative and agentic artificial intelligence (AI), is the primary force behind this rally, although the finance sector has also contributed with the Financial Select Sector SPDR (XLF) up 8.5% year to date [3] Recommended Stocks for 2026 - Five finance stocks are recommended for investment in 2026, having risen over 30% this year: Morgan Stanley (MS), Interactive Brokers Group Inc. (IBKR), Robinhood Markets Inc. (HOOD), Cboe Global Markets Inc. (CBOE), and Invesco Ltd. (IVZ) [4][9] - All five stocks currently hold a Zacks Rank 1 (Strong Buy), indicating potential for further upside [4] Morgan Stanley (MS) - Morgan Stanley's focus on wealth and asset management, along with strategic acquisitions like EquityZen, is expected to enhance revenue growth, with projected increases of 11.7% in total revenues and 12.8% in investment banking fees for 2025 [7] - The firm has an expected revenue growth rate of 3.9% and earnings growth rate of 5.8% for next year, with a recent 3.7% improvement in the Zacks Consensus Estimate for earnings [10] Interactive Brokers Group Inc. (IBKR) - IBKR's revenue growth is supported by proprietary software development, lower compensation expenses, and expansion into emerging markets, with an expected revenue growth rate of 5.5% and earnings growth rate of 8.1% for next year [11][13] - Recent results showed solid revenue growth and lower expenses, indicating a positive outlook for the company [12] Robinhood Markets Inc. (HOOD) - Robinhood operates a financial services platform that allows trading in various assets, including cryptocurrencies, and is expected to benefit from increased retail market participation [14][15] - The company has an expected revenue growth rate of 20.3% and earnings growth rate of 16.2% for next year, with a notable 9.7% improvement in the Zacks Consensus Estimate for earnings [16] Cboe Global Markets Inc. (CBOE) - CBOE anticipates growth in trading volume, which will drive transaction fees and organic growth, with an increased revenue growth target for 2025 set to low double digits to mid-teens [17][18] - The company has an expected revenue growth rate of 2.7% and earnings growth rate of 4.7% for next year, with a 3% improvement in the Zacks Consensus Estimate for earnings [19] Invesco Ltd. (IVZ) - Invesco's financial performance is bolstered by higher assets under management (AUM) and strategic expansion plans, with an expected revenue growth rate of 14.4% and earnings growth rate of 28.6% for next year [20][22] - Recent initiatives, including converting QQQ into an open-end ETF and establishing a joint venture in India, are expected to support revenue growth [21]

Industry Overview - The Zacks Investment Management industry is experiencing growth driven by asset growth, digital transformation, evolving investment vehicles, deeper personalization, and strategic scale [1] - Investment managers, also known as asset managers, manage various financial investments for clients, providing diversification and reducing volatility impacts [3] Key Trends - Continued asset inflows are expected to drive AUM growth, with equity markets performing well and institutional interest increasing [4] - There is a notable rise in inflows into alternative investments, including index funds, private credit funds, and ETFs, alongside the growth of tokenized assets [5] - Mergers and acquisitions (M&As) are being utilized by firms to expand scale, cut costs, and enhance product diversification [6][7] - Elevated expenses due to regulatory compliance and technology upgrades are anticipated to impact profits, although investments in AI and digital platforms may improve margins in the long run [9][10] Industry Performance - The Zacks Investment Management industry ranks 58, placing it in the top 24% of 243 Zacks industries, indicating positive near-term prospects [11][12] - The industry's earnings estimates have been revised upward by 1.9% since April 2025, reflecting growing analyst confidence [13] Comparative Analysis - Over the past two years, the industry has underperformed the S&P 500 Index, gaining 33.9% compared to the S&P 500's 52% increase [15] - The industry's trailing 12-month price-to-tangible book (P/TB) ratio is 3.35X, significantly lower than the S&P 500's 12.55X, indicating a discount compared to the broader market [18][19] Company Highlights - **Ameriprise Financial (AMP)**: As of September 30, 2025, AMP's total AUM was $1.66 trillion, with a CAGR of 5.9% in net revenues over the last five years [27][28]. The company has been restructuring to improve profitability and has a Zacks Rank of 2 (Buy) [31] - **Invesco (IVZ)**: IVZ's AUM reached $2.1 trillion as of September 30, 2025, with a CAGR of 8.5% over the last five years [34]. The company has undertaken initiatives to improve efficiency and has a Zacks Rank of 1 (Strong Buy) [38] - **Affiliated Managers Group (AMG)**: AMG's total AUM was $803.6 billion as of September 30, 2025, with a recent shift towards private markets and liquid alternatives to counter revenue challenges [41][43]. The company also holds a Zacks Rank of 1 [45]

Core Insights - Major asset managers are achieving significant milestones in their ETF businesses amid record inflows, with Capital Group's ETFs reaching $100 billion in assets under management [2] - BlackRock's iShares and Vanguard remain the dominant players in the ETF market, holding $3.9 trillion and $3.7 trillion respectively, while newer entrants like T. Rowe Price are gaining traction [2] Industry Trends - Approximately $1.1 trillion has flowed into US ETFs in 2023 through October, surpassing total inflows for all of 2024, with $378 billion specifically directed towards active ETFs [3] - Total assets in the ETF market have exceeded $13 trillion, indicating robust growth and demand for exchange-traded funds [3] Company Developments - Capital Group has focused on core-style products while other niche issuers have introduced leveraged and thematic funds, with a notable increase in model portfolios for active ETFs [3] - As of March, Capital Group became the third-largest provider of active ETF model portfolios, managing $61 billion, following Wilshire and BlackRock [3] Additional Milestones - Invesco is nearing $800 billion across its 240 US ETFs, while Goldman Sachs has surpassed $50 billion with its 45 US ETFs, and T. Rowe Price has exceeded $20 billion with its 24 ETFs [5]

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 management [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]

Core Insights - Investors in the Financial - Investment Management sector should consider Invesco (IVZ) and BlackRock (BLK) for potential value opportunities [1] Valuation Metrics - Invesco has a Zacks Rank of 1 (Strong Buy), indicating a stronger earnings outlook compared to BlackRock, which has a Zacks Rank of 3 (Hold) [3] - Invesco's forward P/E ratio is 12.69, significantly lower than BlackRock's forward P/E of 22.91 [5] - Invesco's PEG ratio is 0.86, while BlackRock's PEG ratio is 1.89, suggesting Invesco may be undervalued relative to its expected earnings growth [5] - Invesco's P/B ratio is 0.95, compared to BlackRock's P/B of 3.04, further indicating Invesco's relative undervaluation [6] - These metrics contribute to Invesco's Value grade of B and BlackRock's Value grade of D [6] Earnings Outlook - Invesco is noted for its improving earnings outlook, making it a more attractive option in the current market [7]