Core Insights - The largest stocks in the US market are not only highly regarded globally but also represent the market itself, indicating a shift in the importance of stock-picking strategies [1] Group 1 - The founder of Sungarden Investment Publishing emphasizes a non-traditional approach to income investing, focusing on humility and discipline in navigating the modern investment climate [1] - The investment group aims to teach subscribers how to interpret market signals effectively [1]

Core Viewpoint - The Invesco QQQ Trust is highlighted as a leading investment option for exposure to large-cap tech stocks, particularly those involved in artificial intelligence (AI) and related technologies, offering diversification and strong historical performance [1][2][3]. Fund Overview - The Invesco QQQ Trust tracks the Nasdaq-100 index, which includes the 100 largest non-financial stocks in the Nasdaq, with an expense ratio of 0.20% [5]. - The fund has a significant allocation to technology stocks, comprising 64% of its holdings, with consumer discretionary companies making up 18.3% [6]. Performance Metrics - The QQQ has consistently outperformed the Nasdaq Composite over various time frames, with total returns of 21.3% over the past year, 117.2% over three years, and 497.8% over ten years [7]. - A $10,000 investment in the QQQ 20 years ago would be worth $106,600 today, compared to $89,000 for the same investment in the Nasdaq Composite [7]. Top Holdings - The top 10 holdings of the QQQ account for 53% of the fund, with Nvidia, Apple, and Microsoft being the largest contributors [9]. - Most of these companies are involved in AI chip design and development, with Netflix leveraging AI for its streaming services [9][10]. Industry Impact - The fund includes leading cloud computing providers and major players in various tech sectors, contributing to the development of new economic infrastructure [10]. - The companies within the QQQ are established with substantial resources and profitability, with a median market capitalization of $2.44 trillion [13]. Investment Rationale - Investing in the QQQ is presented as a strategy for above-average returns, providing exposure to top tech stocks engaged in significant AI advancements while mitigating risks associated with less established companies [14].

The SEC brake-checked the arms-race to offer ultra-leveraged ETFs this week. Invesco is adjourning its proxy vote to convert QQQ into an open-ended ETF. https://t.co/AheaA4RdlA ...

Core Viewpoint - The Schwab US Dividend Equity ETF (SCHD) has underperformed compared to high-growth technology stocks and alternative funds like the NEOS S&P 500 High Income ETF (SPYI) in 2023, leading to a recommendation for SPYI as a better investment option [1][5]. Performance Comparison - The SCHD ETF has a total return of 4.68% in 2023, while the S&P 500 and Nasdaq 100 indices have increased by 22% and 17%, respectively [1]. - Over the past three years, SCHD's return was only 20%, significantly lower than the Nasdaq 100's 120% and the S&P 500's 78% [2]. Sector Composition - SCHD is primarily composed of companies in traditional industries, with energy being the largest sector at approximately 20% of its holdings [3]. - Other significant sectors in SCHD include consumer staples, healthcare, and industrials, which have faced challenges due to external factors like tariffs [4]. Comparison with SPYI - The NEOS S&P 500 High Income ETF (SPYI) offers a higher yield of 12% and has outperformed SCHD with a three-year return of 58% compared to SCHD's 20% [5][6]. - In 2023, SPYI returned 15%, significantly higher than SCHD's 4.98% [6]. Investment Strategy - SPYI employs a covered call strategy, investing in S&P 500 companies and writing call options to generate monthly premiums for dividends [7]. - SPYI also utilizes tax loss harvesting to enhance returns, which contributes to its superior performance compared to other covered call ETFs [7]. Recommendations - Analysts recommend SPYI as a preferable option for investors seeking dividend income, especially given its historical performance and higher yield compared to SCHD [8].

It's just a bit early to be talking about "what will work in 2026," but I'll offer a preview here. I think it will be a year in which some investors rediscover bonds, and others miss out while licking their AI-stock bubble wounds.I'm Rob Isbitts, founder of Sungarden Investment Publishing. I run the new investing group Sungarden Investors Club, a community dedicated to navigating the modern investment climate with humility, discipline, and a non-traditional approach to income investing. I've been charting i ...

Group 1 - Bitcoin experienced a significant price drop of over 35%, falling below $81,000 after reaching a record high of over $126,000 in early October [1] - The iShares Bitcoin Trust (IBIT) has seen a decline of up to 28% since October 1 [1] - Bitcoin is currently near a 7-month low, with ongoing outflows from ETFs contributing to the downward trend [4] Group 2 - JPMorgan has upgraded two Bitcoin miners while cutting targets for others, indicating a mixed outlook for the mining sector [4] - Cathie Wood has been actively purchasing crypto stocks amidst the Bitcoin sell-off, suggesting potential investment opportunities in the sector [4] - The overall stock market rally remains uneven, but Nvidia's earnings have boosted optimism in the tech sector, which may influence Bitcoin-related investments [4]

Financial Data and Key Metrics Changes - The company achieved a record AUM of $2.1 trillion, with net long-term inflows of nearly $29 billion, representing an 8% annualized organic growth, the best flow quarter since 2021 [13][24] - Total AUM increased by $123 billion, or 6%, from the previous quarter, and by $329 billion, or 18%, year-over-year [24] - Adjusted diluted earnings per share for the third quarter was $0.61, with a significant improvement in operating margin to 34.2% [25][36] Business Line Data and Key Metrics Changes - The ETF platform reached a milestone of $1 trillion in AUM, with an annualized organic growth of 15% [14] - Fundamental fixed income garnered over $4 billion in net long-term inflows, with total fixed income inflows reaching nearly $13 billion when including ETFs [16] - The company recorded net outflows of $5 billion in fundamental equities, primarily due to a broader secular outflow trend in actively managed equities [21] Market Data and Key Metrics Changes - Nearly 40% of long-term AUM is now from clients outside the U.S., with two-thirds of net inflows this quarter coming from EMEA and Asia-Pacific regions [13] - The China joint venture reached a record high AUM of $122 billion, reflecting a 16% increase over the last quarter, with $8.1 billion in net long-term inflows [17] - The company launched 12 new products in its China JV, including its first fixed income ETF, indicating strong demand for innovative products [19] Company Strategy and Development Direction - The company is focused on capital management and has repaid approximately 25% of the term loans used for a $1 billion preferred stock repurchase, enhancing earnings accretion [5][26] - A hybrid investment platform is being implemented, expected to be completed by the end of 2026, aimed at simplifying operations and improving investment performance [7][32] - The company is pursuing growth through partnerships, such as the Barings private markets partnership, which has already launched its first joint product [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted strong momentum in the market, with key indices reaching new highs and increased investor confidence following a Fed rate cut [12] - The company is optimistic about future growth, particularly in fixed income and private markets, despite some volatility in the credit space [56][57] - Management emphasized the importance of investment performance, with over half of funds performing in the top quartile of peers on a three-year basis [23] Other Important Information - The company is in the process of selling a majority interest in its Indian business, expecting cash proceeds of $140 million to $150 million [35] - A non-cash impairment charge of $36 million was recorded related to the sale of intelliflo, which is expected to close in the fourth quarter [33][34] - The effective non-GAAP tax rate for the third quarter was significantly impacted by a favorable resolution of a tax matter, resulting in an effective rate of 11.2% [34] Q&A Session Summary Question: Update on QQQ shareholder vote and marketing expenses - Management is pleased with the progress of the QQQ shareholder vote, noting overwhelming support for the fee change, but cannot disclose specific quorum details [40][41] - The reclassification of marketing expenses does not impact operating income or the proposal's approval likelihood [42] Question: Use of proxy voting firm and expense classification - The proxy solicitation firm's expenses are considered marketing expenses of the fund and are not expected to affect Invesco's operating expenses [45][46] Question: Fixed income flows and market outlook - Management reported strong fixed income performance and organic growth, with no material implications from recent market events [55][56] Question: Details on divestitures and capital return priorities - Proceeds from the India sale are expected to enhance balance sheet flexibility, while the intelliflo sale is anticipated to have negligible impact on overall results [61][63] Question: Expense growth and Alpha platform integration - Implementation costs for the Alpha platform are expected to remain high through 2026, with a focus on managing fixed expenses [67][68] Question: Variable expenses and operating leverage - Variable expenses are expected to fluctuate with revenue, while fixed expenses will be closely managed to drive operating leverage [75][76]

Financial Data and Key Metrics Changes - Invesco reported a record AUM of $2.1 trillion, which is $123 billion or 6% higher than the previous quarter and $329 billion or 18% higher year-over-year [24] - Average long-term AUM increased by 9% sequentially and 16% year-over-year to $1.46 trillion [24] - Net revenues for the third quarter were $1.2 billion, an increase of $82 million compared to the same quarter last year, primarily driven by higher investment management fees [30] Business Line Data and Key Metrics Changes - The ETF platform reached a milestone of $1 trillion in AUM, with an annualized organic growth of 15% [14] - Fundamental fixed income garnered over $4 billion in net long-term inflows, with total fixed income inflows reaching nearly $13 billion when including ETFs [16] - The China joint venture achieved a record AUM of $122 billion, reflecting a 16% increase over the last quarter, with net long-term inflows of $8.1 billion [17] Market Data and Key Metrics Changes - Nearly 40% of long-term AUM is now from clients outside the U.S., with two-thirds of net inflows this quarter coming from AMEA and Asia-Pacific regions [13] - The U.S. wealth management SMA platform reached nearly $34 billion in AUM, with an annualized organic growth rate of 19% [17] - The company experienced strong demand for fixed income products, particularly in Asia, driving net inflows [16] Company Strategy and Development Direction - Invesco is focused on capital management and has repaid approximately 25% of the term loans used for a $1 billion preferred stock repurchase, enhancing earnings accretion [5] - The company is implementing a hybrid investment platform to streamline operations and improve investment performance, expected to be completed by the end of 2026 [7][32] - A significant growth initiative is underway to modernize the QQQ ETF structure, with strong shareholder participation in the proposals [11] Management's Comments on Operating Environment and Future Outlook - Management noted strong momentum in the market, with key indices reaching new highs and increased investor confidence following a Fed rate cut [12] - The company is optimistic about future growth opportunities, particularly in private markets and the evolving demand for income-oriented solutions [9] - Management expressed confidence in the ongoing improvements in investment performance, which is crucial for maintaining market share [22] Other Important Information - The sale of IntelliFlow is expected to generate approximately $100 million in net cash, with potential future earnouts of up to $65 million [8] - The company anticipates closing the transaction for a majority interest in its Indian business, expecting cash proceeds of $140 million to $150 million [35] - The effective non-GAAP tax rate for the third quarter was significantly impacted by a favorable resolution of a tax matter, resulting in an 11.2% rate [34] Q&A Session Summary Question: Update on QQQ shareholder vote and marketing expenses - Management is pleased with the progress of the QQQ shareholder vote, noting overwhelming support for the fee change, and clarified that reclassifying marketing expenses does not impact operating income [41][42] Question: Use of proxy voting firm and expense classification - The proxy solicitation firm is considered a marketing expense of the fund, and management does not foresee it affecting Invesco's operating expenses [45][46] Question: Fixed income flows and market outlook - Management reported continued strength in fixed income flows, with over $30 billion in platform-wide fixed income flows, and noted some softening in bank loan flows [55][56] Question: Details on divestitures and capital return priorities - Proceeds from the sale of the Indian business and IntelliFlow will enhance balance sheet flexibility, with a focus on returning 60% of capital to shareholders [62][63] Question: Expense growth and Alpha platform integration - Management expects implementation costs for the Alpha platform to remain high through 2026, with a focus on managing fixed expenses effectively [68][70]

Financial Data and Key Metrics Changes - The company achieved a record AUM of $2.1 trillion, reflecting a $123 billion increase or 6% from the previous quarter and a $329 billion increase or 18% year-over-year [24] - Average long-term AUM rose to $1.46 trillion, a 9% increase from the last quarter and a 16% increase from the same quarter last year [24] - Net revenues for the third quarter reached $1.2 billion, an increase of $82 million compared to the same quarter last year, primarily driven by higher investment management fees [31] Business Line Data and Key Metrics Changes - The company reported strong net long-term inflows of nearly $29 billion, marking an 8% annualized organic growth, the best flow quarter since 2021 [12] - In the ETF and indexed offerings, the company reached $1 trillion in AUM, with an annualized organic growth of 15% [13] - Fundamental fixed income saw over $4 billion in net long-term inflows, while total fixed income inflows across all products reached nearly $13 billion [15] Market Data and Key Metrics Changes - Nearly 40% of long-term AUM now comes from clients outside the U.S., with two-thirds of net inflows this quarter from AMEA and Asia-Pacific regions [12] - The China joint venture reached a record high AUM of $122 billion, reflecting a 16% increase over the last quarter, with $7.3 billion of net long-term inflows [16] - The company experienced a significant increase in demand for fixed income products, particularly in Asia, with strong institutional interest in investment-grade bonds [15] Company Strategy and Development Direction - The company is focused on capital management and has repaid approximately 25% of the term loans used for a $1 billion preferred stock repurchase, enhancing earnings accretion [4] - A hybrid investment platform is being implemented, expected to be completed by the end of 2026, aimed at simplifying operations and improving investment performance [5][6] - The company is pursuing growth through partnerships, such as the Barings Private Markets partnership, and is in the final stages of selling a majority interest in its Indian business [9][10] Management's Comments on Operating Environment and Future Outlook - Management noted strong momentum in the market, with key indices reaching new highs and increased investor confidence following a Fed rate cut [11] - The company is optimistic about future growth opportunities, particularly in private markets and fixed income, as it continues to innovate and meet client demand [19][20] - Management expressed confidence in the ongoing initiatives to enhance investment performance and reduce redemption rates in fundamental equities [22] Other Important Information - The company recorded a non-cash impairment charge of $36 million related to the sale of IntelliFlow, which is expected to close in the fourth quarter [33] - The effective non-GAAP tax rate for the third quarter was significantly impacted by a favorable resolution of a tax matter, resulting in an 11.2% effective tax rate [34] - The company plans to continue common share repurchases, with a total payout ratio expected to be near 60% this year [38] Q&A Session Summary Question: Update on QQQ shareholder vote and marketing expenses - Management indicated strong participation and momentum in favor of the fee change proposals, but could not disclose specific quorum details [41][42] - The reclassification of marketing expenses does not impact operating income or the proposal's approval likelihood [43] Question: Clarification on proxy voting expenses - Proxy solicitation expenses are considered marketing expenses of the fund and are not expected to affect Invesco's operating expenses [45][46] Question: Insights on fixed income flows and future expectations - The company has seen strong fixed income performance and expects continued strength, despite some recent volatility [51][52] Question: Details on divestitures and capital return priorities - Proceeds from the sale of the Indian business are expected to be $140 to $150 million, with negligible impact on overall operating results [57][58] - The company remains focused on improving its balance sheet and returning capital to shareholders while investing in growth [59] Question: Future expense growth related to the Alpha platform - Implementation costs for the Alpha platform are expected to remain high through 2026, with a focus on managing fixed expenses [63][64] Question: Variable expenses outlook for 2026 and 2027 - Variable expenses are expected to fluctuate with revenue, while fixed expenses will be closely managed to drive operating leverage [70][71]

Core Insights - Multiple Bitcoin mining stocks experienced significant gains despite a market downturn triggered by President Trump's tariff announcement on China [1][2] Company Performance - HIVE (Nasdaq: HIVE) led the week with a 40% return from Monday open to Friday close [2] - BitFarms (Nasdaq: BITF) followed with a 31% return [2] - IREN (Nasdaq: IREN) shares nearly doubled, opening at $30.68 on September 10 and closing just under $60 on October 10 [3] Market Trends - The average one-month return for Bitcoin miners was 73.26% [3] - Despite the gains in Bitcoin mining stocks, broader asset classes faced declines, with BlackRock's IBIT Bitcoin ETF down 3.7%, and SPY and QQQ ETFs down 2.7% and 3.5%, respectively [2][4]