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Invesco Ltd. (IVZ), the fourth-largest ETF issuer, said first-quarter assets in its business that includes its exchange-traded funds gained 1.3%. However, the company's total AUM barely changed from the previous period, as tumbling markets eroded the value of its funds.
Its ETF and index business pulled in a net $16.3 billion to end the quarter with $491 billion in assets. Invesco, which is known for its Invesco QQQ Trust (QQQ) ETF, said in a statement that total assets dropped less than 1% to $1.8 trillion due to $42.2 billion in market losses during the quarter.
The Atlanta-based company, which manages 236 exchange-traded funds, said its overall long-term, or annualized, inflows fell by 31% to $17.6 billion from the fourth quarter.
On a year-over-year basis, total assets nearly tripled from $6.3 billion in last year’s first quarter.
IVZ and Others Report Mixed Results
Invesco follows other ETF issuers, including BlackRock Inc. (BLK), JPMorgan Chase & Co. (JPM), State Street Corp. (STT) and Charles Schwab Corp. (SCHW), that reported mixed first-quarter results, thanks to the market upheaval stemming from President Donald Trump’s tariff war.
State Street said net flows into its exchange-traded funds dropped sharply from the previous quarter, largely a result of investors pulling billions from its flagship SPDR S&P 500 ETF Trust (SPY).
At the same time, many investors chose to buy into sliding markets. BlackRock reported $107 billion in total net inflows into ETFs for the quarter, Schwab said ETF assets rose 16% as flows jumped and JPMorgan said ETF assets jumped 39%.
Volatile Markets
Invesco is aiming to “help our clients navigate this volatile and complex operating environment,” CEO Andrew Schlossberg said in the statement.
Assets held by QQQ fell 6.8% to $297.2 billion, mostly due to $26.8 billion in market losses. The fund pulled in $5.1 billion during the quarter. QQQ, which was created as a unit investment trust in 1999, is the only ETF Invesco reports on separately from other investment products it sells.
Top Invesco ETFs
Source: etf.com data
The U.S. ETF industry’s overall inflows dipped 32% from $427 billion in last year's fourth quarter to $291 billion during the first quarter, State Street said recently, citing Morningstar Data. Still, they jumped 41% from last year’s first-quarter total of $191 billion.