How Invesco-State Street Merger Talks Can Build an ETF Giant

The video discusses a potential merger between Invesco and State Street, which would create a significant player in the ETF market. The merger would result in a company managing a combined $5.5 trillion in assets, capturing 20% of the ETF market share. Despite being third behind Vanguard and BlackRock, the merger would allow State Street to strengthen its position. The companies are complementary, with Invesco known for smart beta strategies and State Street for its highly traded ETFs like SPY. This merger highlights the importance of economies of scale in the ETF industry.

Why is the merger considered a big deal in the context of competition in the ETF market?

What types of strategies is Invesco known for in the ETF market?