FHI vs IVZ: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. FHI and IVZ share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined FHI and IVZ exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Federated Hermes, Inc. (NYSE: FHI) is a global investment manager headquartered in Pittsburgh, Pennsylvania, formed from the combination of Federated Investors and the UK-based Hermes Investment Management. As of the first quarter of 2026 the firm managed a record ~$907 billion in assets, split roughly into money market funds (about 75% of managed assets), fixed income (about 11%), equity (about 11%), alternatives (about 2%), and multi-asset (under 1%). Its money market business, with a record ~$685 billion in assets, makes Federated one of the largest cash-management providers in the country, serving institutions, financial intermediaries, and individual investors.

Full FHI guide

Invesco Ltd. is a global independent investment management firm that manages money for retail and institutional clients across equities, fixed income, alternatives, and multi-asset strategies. It distributes through mutual funds, separately managed accounts, institutional mandates, and a large ETF business, and it is best known as the sponsor of Invesco QQQ, one of the largest and most heavily traded ETFs in the world. Because it earns fees on the assets it manages, Invesco's revenue moves with two things: the level of markets (which lifts or lowers asset values) and net client flows (money coming in or leaving).

Full IVZ guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• FHI drivers: Scaled money market franchise; Growth in equity and alternatives.
• IVZ drivers: QQQ conversion unlocks new fees; Record AUM and durable inflows.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Federated's heavy concentration in money market funds ties a large share of its earnings to short-term interest rates: sustained rate cuts can compress money market yields and force fee waivers, which reduce net revenue, as the firm experienced during past near-zero-rate periods. For IVZ, the dominant risk is market sensitivity: as a fee-on-assets business, Invesco's revenue and profits fall when equity and bond markets drop, so a sustained downturn would cut AUM and earnings quickly regardless of execution.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick FHI if you believe its drivers more; IVZ if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the FHI and IVZ guides.

FHI. At ~$56.24 Federated Hermes trades near 10.5x trailing earnings of ~$5.37 per share and under 10x forward estimates, a modest multiple for a manager that has grown revenue double digits and beaten EPS estimates four quarters in a row. The discount reflects how much of the asset base sits in money market funds, whose economics depend on short-term interest rates and cash demand. The October 29 quarter will show whether money market and equity assets held their records into the third quarter.

IVZ. Figures are approximate and tied to the asOf date; verify live numbers before acting. At about $28.44 on October 16, 2026, Invesco trades near 8.8 times forward earnings and 1.3 times book with a yield near 3%, a modest multiple for an asset manager whose adjusted EPS is expected to grow about 38% in 2026; GAAP results show a trailing loss, so there is no meaningful trailing P/E. For an asset manager, AUM, flows, and fee rate matter more than a single quarter's EPS, and the Q3 report on October 27 is the first full quarter in which QQQ fee revenue can start to appear. The analyst mean target is about $34.64.

Headline figures (approximate, October 2026): FHI shows revenue (ttm) ~$1.93 billion (Q2 2026 ~+18% YoY), net income (ttm) ~$393 million (profit margin ~21%), diluted eps (q2 2026) ~$1.38 vs ~$1.19 expected, p/e trailing / forward ~10.5x / ~9.7x; IVZ shows revenue (ttm) ~$6.9 billion; latest quarter up ~20.5% YoY, adjusted eps (q2 2026) ~$0.71 vs ~$0.66 consensus, net income (ttm, gaap) ~-$309 million, operating margin (ttm) ~20% GAAP.

FHI and IVZ are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined FHI and IVZ exposure against your real portfolio. It is not an investment adviser.