Invesco (IVZ) Climbs on 3rd Day on Expected Multi-Million Dollar Profit from ETF

We recently published These 10 Stocks Surprisingly Lead Gains While Wall Street Naps. Invesco Ltd. (NYSE:IVZ) is one of this week’s top performers.

Invesco extended its winning streak to a third consecutive day on Friday, jumping 15.28 percent to close at $19.92 apiece amid plans to convert one of its profitable offerings—the QQQ ETF, which tracks the Nasdaq 100—to an open-traded fund.

Invesco Ltd. (NYSE:IVZ) filed its preliminary proxy statement with the Securities and Exchange Commission (SEC) seeking the consent of QQQ shareholders to operate the ETF and convert it from a “unit investment trust” to that of a “management company.”

Under current circumstances, QQQ’s $355-billion in assets and 0.2-percent expense ratio currently generates $711 million in annual fee revenues, more than any other ETF, but leaves nothing to Invesco Ltd. (NYSE:IVZ) as the current setup gives the bulk divided between the fund’s trustee, Bank of New York Mellon, and Nasdaq, which provides the index. As mandated by the fund’s prospectus, any remaining revenues must be spent on marketing QQQ.

According to Bloomberg, the dynamics will change upon approval of the shareholders of its intent, and will also see lower expense ratios of 0.18 percent.

While we acknowledge the potential of IVZ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.