Invesco Exch Traded Fd Tr Ii — Business Overview

What does Invesco do?

Invesco is a global independent asset manager that invests money on behalf of retail and institutional clients across a wide range of strategies. With approximately $2.2 trillion in assets under management (AUM) — meaning the total value of client money it oversees — as of December 31, 2025, Invesco is one of the larger independent investment managers in the world. It employs about 7,500 people across more than 20 countries and serves clients in over 120 countries.

Invesco organizes its AUM by investment capability, giving a clear picture of where client money actually sits:

Clients are split between retail and institutional channels. Retail AUM stood at $1,515.7 billion (about 70% of total), mostly reached through third-party financial intermediaries like brokers, banks, and online wealth platforms. Institutional AUM totaled $654.2 billion (about 30%), covering pension funds, insurers, endowments, sovereign wealth funds, and similar large organizations.

How does Invesco make money?

Invesco derives substantially all of its revenue from investment management fees charged on AUM. The basic model is straightforward: the more money it manages, and the higher the fee rate on that money, the more revenue it earns. Fee rates vary meaningfully by strategy — actively managed equity, balanced accounts, real estate, and other alternatives earn higher fees, while fixed income, money market, stable value, and ETFs (exchange-traded funds, which passively track an index) earn lower fees.

The business has a natural sensitivity to both market performance and investor flows. Rising markets increase AUM automatically, boosting fees even without new client money coming in. Conversely, market declines or net client withdrawals shrink AUM and compress revenues. This means Invesco's economics are closely tied to the health of financial markets.

What market does Invesco operate in?

Invesco competes in the global investment management industry, a large and evolving market shaped by significant structural shifts. The filing does not cite a specific total market size, but Invesco alone manages $2.2 trillion, and it references the U.S. and China as the dominant global wealth markets. The industry is undergoing several notable trends: investors have been steadily shifting toward passively managed strategies (index funds and ETFs), private market allocations (private credit, real estate, infrastructure) are growing and increasingly reaching retail investors, and distribution partners are consolidating around fewer, larger asset managers.

These trends create both pressure and opportunity for Invesco. The shift toward passive investing compresses average fee rates across the industry, since passive strategies charge far less than active ones. At the same time, growing appetite for private markets — where fees are higher — represents a meaningful opportunity. The filing explicitly states that these dynamics are expected to drive further industry consolidation.

Who are Invesco's main competitors?

The investment management industry is highly competitive and fragmented, with Invesco facing rivals ranging from giant asset managers to banks, hedge funds, and even technology firms. The filing does not name specific competitors, but notes that many rivals have greater financial resources and higher brand recognition. Competitors include traditional investment management firms, commercial and investment banks, broker-dealers, hedge funds, insurance companies, and increasingly, technology providers entering the financial services space.

Invesco argues its independence is itself a competitive advantage. Because Invesco only manages money and does not also distribute or service financial products the way a large bank might, it avoids the conflicts of interest that can arise in those integrated models. The company also points to the diversity of its investment capabilities — spanning active, passive, and alternatives, across dozens of countries — as relatively rare among independent managers. Its U.S. retail business, including its well-known QQQ ETF (which tracks the Nasdaq-100 index), ranks among the leading asset managers in the U.S.

Where does Invesco operate?

Invesco has a genuinely global footprint, with on-the-ground presence in more than 20 countries and clients in over 120. AUM by client domicile breaks down as follows: Americas at $1,492.4 billion (69% of total, up 13.4% year-over-year), EMEA at $356.5 billion (16%, up 37.0%), and Asia-Pacific at $321.0 billion (15%, up 18.8%).

China represents a notable and growing exposure through a joint venture structure. Invesco Great Wall Fund Management Company, Invesco's joint venture in China, managed approximately $132.5 billion in AUM as of year-end 2025, up 42.2% in one year, making it one of the largest asset managers in China. While this is a meaningful growth engine, it also introduces geopolitical and regulatory risk that investors would want to factor in, though the filing does not quantify that exposure further.