US-based asset manager Invesco has wrapped up the acquisition of Guggenheim Investments’ exchange-traded funds (ETF) arm.

The transaction, first announced in September last year, is valued at $1.2bn. The acquired entity’s assets under management totalled $38.8bn at the end of February 2018.

Invesco president and CEO Martin Flanagan said: “The addition of Guggenheim’s products to Invesco’s strong and diversified range of active, passive and alternative capabilities and expertise will further enhance our ability to meet the investment needs of our clients and deliver the value they seek.”

The takeover of the business will boost Invesco’s ETF assets to over $215.3bn.

In August 2017, Invesco acquired UK-based ETF provider Source. In 2016, the asset manager snapped up Jemstep, an adviser-focused digital advice platform.

Invesco global head of ETFs Dan Draper added: “We’re excited to add Guggenheim Investments’ complementary ETF business, including well-known products such as BulletShares and S&P500 Equal Weight ETF (NYSE: RSP), to our existing robust range of factor, smart beta, fixed income and equal weight ETFs.

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“This 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.”

Invesco also said that it has reduced management fees on BulletShares to 10 basis points from 24% basis points.