New ETFs offer factor and thematic opportunities that align with the current macroeconomic environment
TORONTO, July 27, 2023 /CNW/ -- Invesco Canada Ltd. ("Invesco") today announced the launch of three new exchange traded funds (ETFs) that will offer Canadian investors unique ways to invest in the current macroeconomic environment. The strategies include two multifactor ETFs that harness insight from Invesco's investment management team to pair factor investing with economic cycles. The third ETF offers a thematic strategy that invests in companies well-positioned to capitalize on the increasing investment in technologies supporting the evolution of energy infrastructure.
"We are always looking to bolster our Canadian ETF line-up with products that can provide clients with new and unique ways to meet their desired investment outcomes," said Pat Chiefalo, Senior Vice President, Head of ETFs & Indexed Strategies, Canada. "Our three new ETFs will offer strategies that are relevant in the current macroeconomic environment, using dynamic factors and pertinent themes that speak to the modern direction of the Canadian marketplace."
Below are the three ETFs launching today:
ETF Name |
Ticker |
Invesco Russell 1000 Dynamic-Multifactor Index ETF |
IUMF / IUMF.F |
Invesco International Developed Dynamic-Multifactor Index ETF |
IIMF / IIMF.F |
Invesco Morningstar Global Energy Transition Index ETF |
IGET / IGET.F |
The Invesco Russell 1000® Dynamic-Multifactor Index ETF (IUMF, IUMF.F) is based on the Russell 1000 Invesco Dynamic Multifactor Index, which is constructed using a rules-based approach that re-weights large-cap securities of the Russell 1000® Index according to economic cycles and market conditions, reflected by expansion, slowdown, contraction or recovery. The securities are assigned a multi-factor score from one of five investment factors: Value, Momentum, Quality, Low Volatility or Size. IUMF and its index is reconstituted and rebalanced based on economic indicator signal changes, as frequently as monthly.
Invesco will also launch an international version of this strategy with the Invesco International Developed Dynamic-Multifactor Index ETF (IIMF, IIMF.F). IIMF will track the FTSE Developed ex US Dynamic Multifactor Index, which reflects a dynamic combination of factor exposures drawn from constituent stocks of the FTSE Developed ex US Index. Like the large-cap US version, IIMF then re-weights the stocks based upon economic environment and overall market conditions, reflected by expansion, slowdown, contraction or recovery. IIMF and its index are rebalanced and reweighted monthly to target factors including Value, Momentum, Quality, Low Volatility or Size.
"Over five years ago, Invesco helped to pioneer the proprietary dynamic multifactor investing strategy utilized in these ETFs1," explained Chiefalo. "We are excited to now provide Canadian investors flexibility and choice on how to access these strategies. We believe these ETFs can become important allocations in Canadian portfolios for US and international equity exposures."
Also launching is the Invesco Morningstar Global Energy Transition Index ETF (IGET, IGET.F), based on the Morningstar Global Energy Transition Index. IGET is designed as a thematic, ETF that targets companies anywhere in the world that Morningstar's independent equity research team believe are best positioned to benefit from the energy transition megatrend. This is a highly differentiated offering providing broad exposure to a transformative theme with considerable growth potential, in areas such as Renewable Energy, Energy storage, Carbon Capture Technologies, and Hydrogen. The index and constituents of IGET are designed to deliver direct exposure to the Energy Transition theme by drawing on the in-depth knowledge and forward-looking insights of Morningstar's equity research theme.
The initial offering of the three ETFs included in the above table has now closed. Units in the ETFs will be available for trading on TSX when the market opens today.
1 |
Initially, the ETFs will invest in Invesco Russell 1000 Dynamic Multifactor ETF (OMFL) which was launched on November 8, 2017, and the Invesco International Developed Dynamic Multifactor ETF (IMFL) which was launched on February 24, 2021. |
About Invesco Ltd.
Invesco Ltd. is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive, and alternative investment capabilities. With offices in more than 20 countries, Invesco managed US$1.5 trillion in assets on behalf of clients worldwide as of March 31, 2023. For more information, visit www.invesco.com.
Commissions, management fees and expenses may all be associated with investments in ETFs. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Please read the prospectus before investing. Copies are available from Invesco Canada Ltd. at invesco.ca.
There are risks involved with investing in ETFs. Please read the prospectus for a complete description of risks relevant to the ETF. Ordinary brokerage commissions apply to purchases and sales of ETF units.
Most Invesco ETFs seek to replicate, before fees and expenses, the performance of the applicable index, and are not actively managed. This means that the sub-advisor will not attempt to take defensive positions in declining markets and the ETF will continue to provide exposure to each of the securities in the index regardless of whether the financial condition of one or more issuers of securities in the index deteriorates. In contrast, if an Invesco ETF is actively managed, then the sub-advisor has discretion to adjust that Invesco ETFs ETF's holdings in accordance with the ETF's investment objectives and strategies.
Invesco International Developed Dynamic-Multifactor ETF and Invesco Russell 1000 Dynamic-Multifactor Index ETF have been developed solely by Invesco Canada Limited ("Invesco Canada"). Invesco International Developed Dynamic-Multifactor ETF and Invesco Russell 1000 Dynamic-Multifactor Index ETF are not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the "LSE Group"). FTSE Russell is a trading name of certain of the LSE Group companies.
All rights in the FTSE Developed ex US Invesco Dynamic Multifactor Index and Russell 1000® Invesco Dynamic Multifactor Index vest in the relevant LSE Group company which owns the FTSE Developed ex US Invesco Dynamic Multifactor Index and Russell 1000® Invesco Dynamic Multifactor Index, as applicable. FTSE®, "Russell®", "Russell 1000®", and "FTSE Russell®" are trademarks of the relevant LSE Group company and are used by any other LSE Group company under license.
FTSE Developed ex US Invesco Dynamic Multifactor Index and Russell 1000® Invesco Dynamic Multifactor Index are calculated by or on behalf of FTSE International Limited or its affiliate, agent or partner. The LSE Group does not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the FTSE Developed ex US Invesco Dynamic Multifactor Index or Russell 1000® Invesco Dynamic Multifactor Index or (b) investment in or operation of Invesco International Developed Dynamic-Multifactor or Invesco Russell 1000 Dynamic-Multifactor Index ETF. The LSE Group makes no claim, prediction, warranty or representation either as to the results to be obtained from Invesco International Developed Dynamic-Multifactor or Invesco Russell 1000 Dynamic-Multifactor Index ETF or the suitability of the FTSE Developed ex US Invesco Dynamic Multifactor Index or Russell 1000® Invesco Dynamic Multifactor Index for the purpose to which it is being put by Invesco Canada.
Morningstar® Global Energy Transition Index™ is a service mark or trademark of Morningstar, Inc. and has been licensed for use for certain purposes by Invesco Canada Ltd. Invesco Global Energy Transition Index ETF is not sponsored, endorsed, sold or promoted by Morningstar, Inc. or any of its affiliates (all such entities, collectively, "Morningstar"). Morningstar makes no representation or warranty, express or implied, to the owners of Invesco Global Energy Transition Index ETF or any member of the public regarding the advisability of investing in securities generally or in Invesco Global Energy Transition Index ETF in particular or the ability of Invesco Global Energy Transition Index ETF to track general stock market performance.
Invesco® and all associated trademarks are trademarks of Invesco Holding Company Limited, used under licence.
Invesco is a registered business name of Invesco Canada Ltd.
© Invesco Canada Ltd., 2023
Contact: Rachael Peng, +1 713.214.4193, [email protected]
SOURCE Invesco Ltd.
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