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Portfolio > ETFs

Invesco Completes Acquisition of Guggenheim’s ETF Business

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Invesco has completed its $1.2 billion acquisition of Guggenheim Investments’ ETF business, and those ETFs, which had roughly $38.8 billion in assets as of the end of February, now carry the PowerShares name.

They include over a dozen equal-weight index ETFs, among them the $14.3 billion equal-weight S&P 500 ETF as well as the BulletShares defined-maturity ETFs, which, like individual bonds, return an investor’s principal at maturity, but unlike individual bonds, include multiple securities for diversity. Despite their name change, the tickers of the ETFs are unchanged.

Along with the completion of the Guggenheim Investments deal, Invesco announced it has slashed fees on BulletShares from 24 basis points to 10.

“We’re excited to add Guggenheim Investments’ complementary ETF business, including well-known products such as BulletShares and S&P 500 Equal Weight ETF (RSP), to our existing robust range of factor, smart beta, fixed income and equal-weight ETFs,” said Dan Draper, global head of ETFs at Invesco, in a statement.

(Related: A Little-Known Bond Vehicle for When Interest Rates Rise)

The acquisition “strengthens our ability to build better and more diversified portfolios through our solutions platform, enhances the range of capabilities available via Jemstep (our advisor-focused digital solution), and helps us better meet the needs of our clients,” added Draper.

Invesco President and CEO Martin Flanagan said in the same statement that the addition of Guggenheim’s products to Invesco’s lineup of active, passive and alternative strategies ”will further enhance our ability to meet the investment needs of our clients and deliver the value they seek.”

Invesco’s acquisition of Guggenheim’s ETF business was valued around 11.7 times estimated underlying earnings for 2018 after future tax benefits are taken into account when it was announced.

(Related: Invesco Buys Jemstep)

With its latest acquisition, Invesco’s ETF assets under management total more than $215.3 billion globally as of Feb. 28. The firm acquired Source, a London-based ETF provider, in 2017 and robo-advisor Jemstep in 2016.

For a listing of all the new PowerShares ETFs, formerly carrying the Guggenheim name, check out this statement from Invesco.


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