The talks for Guggenheim’s fund and ETF businesses, which include a portfolio of fixed income offerings that trade under the name BulletShares, are in advanced stages, according to the Financial Times.
In April this year Invesco, which runs Invesco Perpetual in the UK, announced a deal to buy one of Europe’s major exchange-traded products providers, Source, to add its assets to the firm’s existing PowerShares ETF business. Source had around $18bn in ETF assets.
Guggenheim’s ETF business is estimated to have more than $30bn (£23bn, €25bn) in assets under management, and Invesco is expected to pay around $2bn for the whole business The Wall Street Journal reported.
Invesco managed $858bn in assets as of 30 June and is the world’s fourth-largest ETF provider. In the first three months of this year net flows into its passive offering were $2.3bn, while the PowerShares business saw inflows of $1bn in the three months.
The firm has yet to comment on the rumoured acquisition.
Global inflows into ETFs hit a record level of $347.7bn in the first half of 2017, according to ETFGI, an independent research and consultancy firm.
Assets invested in ETFs/ETPs listed globally totalled a record $4.17trn at the end of first half of 2017, it said.