Invesco S&P Europe 350 Equal Weight Index ETF (EQE)
TORONTO, Sept. 27, 2018 /CNW/ - Invesco today announced the launch of Canada's first exchange-traded fund (ETF) to provide equal-weight exposure to the companies that make up the S&P Europe 350® Index: Invesco S&P Europe 350 Equal Weight Index ETF (EQE). This expands Invesco's equal-weight offering, following the launch of Invesco S&P 500 Equal Weight Index ETF (EQL), which began trading May 29, 2018.
Launching today on the NEO Exchange, EQE seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the S&P Europe 350 Equal Weight Index or any successor thereto on an unhedged basis, in the case of any unhedged units, or on a hedged basis, in the case of any hedged units. The ETF invests, directly or indirectly, primarily in equity securities of companies listed in Europe.
"Investors seeking low-cost exposure to European equities through a cap-weighted index may inadvertently take on substantial concentration risk," said Jasmit Bhandal, Head of ETF Product Strategy and Development with Invesco Canada. "The top 50 stocks in the S&P Europe 350® account for 49% of the index weight as compared to the equal weight version in which the top 50 stocks are only 16% of the index weight.1"
"The equal-weight strategy of EQE can help mitigate that risk, and provide greater diversification potential," added Bhandal.
EQE tracks the S&P Europe 350 Equal Weight Index, which weights each company equally at each quarterly rebalancing.
The initial offering of Invesco S&P Europe 350 Equal Weight Index ETF has now closed. Units in the ETF will be available for trading on the NEO Exchange when the market opens today.
The ETF is available in CAD-unhedged (ticker symbol: EQE) and CAD-hedged (ticker symbol: EQE.F) series, allowing investors to choose the currency exposure that best suits their unique investment goals.
EQE offers investors the following potential benefits:
- Balanced exposure: EQE gives investors access to the developed European equities market through an equal-weighting approach that reduces concentration risk relative to market-cap-weighted indices
- Disciplined rebalancing: Equal-weight exposure is maintained through quarterly rebalancing, which helps sever the link between a stock's price and its weight within the portfolio
- Higher return potential: The S&P Europe 350 Equal Weight Index has outperformed the S&P Europe 350® over the long term2
For more information on Invesco Canada's line of factor-based smart beta ETFs, visit invesco.ca.
1 S&P Dow Jones Indices as at August 31, 2018.
2 Based on the performance of the S&P Europe 350 Equal Weight Index from August 31, 2003 to August 31, 2018. The Index will not have the same performance as the S&P Europe 350®, and its performance over any given period may be better or worse than that of the S&P Europe 350®. The S&P Europe 350 Equal Weight Index was created on June 25, 2018. The S&P Europe 350 Equal Weight Index has been back-tested to August 2003. Index data shown before these creation dates have been reconstructed and are calculated on a basis consistent with their current basis of calculation. The reconstructed performance is hypothetical and for illustrative purposes only. You cannot invest directly in an index. Index performance does not reflect fees and expenses that would be applicable to a fund. The hypothetical performance data for the Index should not be taken as indicating that if the Index had, in fact, existed during the shown time periods before its creation that the Index would have achieved the hypothetical results shown, as actual results might have differed.
About Invesco Ltd.
Invesco Ltd. is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ; invesco.com.
Commissions, management fees and expenses may all be associated with investments in exchange-traded funds (ETFs). ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Please read the simplified prospectus before investing. Copies are available from your advisor or Invesco Canada Ltd.
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.
Some 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 ETF is actively managed, then the sub-advisor has discretion to adjust that ETF's holdings in accordance with the ETF's investment objectives and strategies.
The S&P Europe 350 Equal Weight Index (the "Index") is a product of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates ("SPDJI"), and has been licensed for use by Invesco Canada Ltd. Standard & Poor's®, S&P®, and S&P Europe 350® are registered trademarks of Standard & Poor's Financial Services LLC, a division of S&P Global ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones") and has been licensed for use by SPDJI. This Invesco ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Index.
Invesco and Invesco Canada are registered business names of Invesco Canada Ltd.
Invesco® and all associated trademarks are trademarks of Invesco Holding Company Limited, used under licence.
© Invesco Canada Ltd., 2018
SOURCE Invesco Canada Ltd.
For further information: Aysha Mawani, Vice President, Corporate Affairs, Tel: 416.324.7712, [email protected]