Invesco S&p500 Eq Wgt Etf — Financial Results
AUM Grew 17.5% to $2.17 Trillion, Driven by Markets and Net Inflows
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Ending AUM (billions) | $1,585.3 | $1,846.0 | $2,169.9 |
| Net long-term flows (billions) | $10.2 | $65.1 | $81.2 |
| Average AUM (billions) | $1,500.6 | $1,712.2 | $2,000.1 |
Assets under management (AUM) — the total value of investments Invesco manages on behalf of clients — rose from $1.85 trillion to $2.17 trillion in 2025. The growth came from both market gains ($193.9 billion) and genuine client inflows ($81.2 billion net long-term flows), with ETFs and Index strategies and the China joint venture leading flow momentum. This matters because Invesco's revenue is directly tied to AUM levels.
Underlying Profitability Improved Steadily, but a Massive Write-Down Obscures the Picture
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Adjusted operating margin | 28.2% | 31.1% | 33.4% |
| Adjusted diluted EPS | $1.51 | $1.71 | $2.03 |
| GAAP operating margin | (7.6)% | 13.7% | (10.9)% |
On an adjusted (non-GAAP) basis — which strips out one-time items — Invesco's operating margin expanded to 33.4% and adjusted earnings per share rose 19% to $2.03. The reported (GAAP) loss, however, reflects a $1.79 billion non-cash intangible asset impairment (a write-down of the value assigned to acquired U.S. retail mutual fund contracts), which pushed the GAAP operating margin deeply negative. The impairment does not affect cash or day-to-day operations.
Fee Rates Are Declining as Clients Shift to Lower-Cost Products
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net revenue yield ex. performance fees (bps) | 28.4 | 25.4 | 23.0 |
A basis point (bps) is one-hundredth of a percent — used here to show how much revenue Invesco earns per dollar of AUM. That rate has dropped from 28.4 to 23.0 bps over three years, meaning Invesco is managing more money but earning proportionally less from each dollar. The shift reflects clients moving toward lower-fee products like ETFs and indexed strategies, a structural trend across the asset management industry.
Invesco Repurchased $1.5 Billion of Preferred Stock Held by MassMutual
During 2025, Invesco bought back $1.5 billion of its Series A Preferred Stock from MassMutual (paying a $240 million premium, for a total cost of $1.74 billion), reducing the outstanding balance to $2.5 billion. Preferred stock sits ahead of common shareholders in the capital structure and carries a fixed 5.9% annual dividend, so reducing it lowers ongoing dividend obligations and simplifies the balance sheet over time.
QQQ Converted from a Legacy Structure to a Modern ETF
On December 20, 2025, the Invesco QQQ Trust — one of the largest and best-known ETFs tracking the Nasdaq-100 — converted from a unit investment trust (UIT) to a standard open-end ETF structure. This reduces the expense ratio for investors and gives Invesco more operational flexibility, including the ability to generate new revenue streams from the product. QQQ ended 2025 with $407.2 billion in AUM, up from $318.9 billion at the start of the year.
Strategic Divestitures Narrow the Business Focus
Invesco sold its intelliflo financial planning software business and a 60% stake in its India asset management unit during Q4 2025, collecting $236.5 million in combined proceeds. It also announced a post-period agreement to sell its Canadian fund management contracts to CI Global Asset Management while retaining a sub-advisory role. These moves reduce headcount (down from 8,508 to 7,499) and signal a deliberate effort to concentrate on core investment management rather than adjacent technology or distribution businesses.