1999
Our first ETF launched in 1999 tracking the Nasdaq-100 index, providing access to innovation through large and mega-cap non-financial companies.
Institutional adoption of ETFs has been growing and evolving. Explore the breadth of our ETF capabilities and our expansive platform with experts dedicated to supporting your investment goals.
Institutions are looking for greater access and liquidity in markets (e.g., exposure to the senior loan market can be attained using ETFs).
Institutions have been expanding their use of ETFs (e.g., utilize ETFs to gain precise factor exposure or access active strategies).
ETFs can be efficient solutions for helping institutions manage asset allocation (e.g., Treasury ETFs can be used as collateral management).
As one of the world’s largest ETF providers with over US$1 trillion1 globally in ETF assets under management, we’ve been dedicated to ETF
investing since 2003.
Our 25+ years of innovation enable us to uncover new opportunities for investors, as well as improving the performance of core ETF exposures.
We provide clients with insights on products, regulations and markets with over 100 ETF experts – including portfolio managers, product specialists and capital markets team.
Our first ETF launched in 1999 tracking the Nasdaq-100 index, providing access to innovation through large and mega-cap non-financial companies.
We launched the world’s first ETF on the S&P 500 Equal Weight index, which marked the start of an extensive build-out of factor & smart-beta solutions that Invesco is recognized for today.
With innovation symbolizing our ETF capabilities, we launched the first ETF on AT1 bonds, providing liquid access to hybrid securities that offer alternative sources of income to clients.
Together with Galaxy Asset Management, we launched one of the first physical Bitcoin ETF. We have offered exposure to the theme of digital assets and the wider blockchain ecosystem since 2019.
ETFs can offer convenient access to broad and diversified baskets of bonds at a low cost and can be a simple and efficient investment vehicle with which to access the bond market.
With an opportunity set as expansive as the country itself, it’s crucial for international investors to gain the most effective exposure. Our ETF capabilities can open the door to China, helping you gain access to the country’s wide range of growth stories.
Investing in gold exchange-traded commodities (ETCs)? Our platform offers among the lowest overall cost exposures to the gold price in Europe.
An Exchange Traded Fund (ETF) is a pooled investment vehicle with shares that can be bought and sold throughout the day on the stock exchange, in the same way that ordinary stocks and shares are traded.
Exchange Traded Commodities (ETCs) are listed debt instruments traded on a stock exchange and backed by a commodity. They are not funds or ETFs.
Benefits:
Low cost of ownership – ETFs tend to be cheaper than most other funds.
Liquidity – Creation/redemption process ensures liquidity
Ease of trading – ETFs can be traded on a stock exchange at any time, when open. May be an attractive feature for investors who are looking for more flexibility around when to buy and sell an investment.
Transparency – ETFs are very transparent and usually disclose their full list of holdings daily on the ETF provider’s website.
Index tracking – Physical and synthetic replication models may offer economic advantages
Risks:
Tracking differences: ETFs may not track an index perfectly. The difference between fund return and index return is called ‘tracking difference’.
Capital risk: Like any investment product, the value of an ETF may go down as well as up, and you may not get back the amount invested.
You would typically buy and sell ETFs through a stockbroker or online trading platform, just like ordinary stocks and shares.
While buying and selling our ETFs is usually quite straightforward, you may wish to seek professional advice especially if you have a particularly large or complex trade.
There are many ways for fund managers to track the performance of an index. These ‘replication methods’ fall into two broad categories, physical and synthetic.
Physical ETFs own the underlying stocks or bonds that comprise the benchmark index; whereas a synthetic ETF aims to deliver the index performance through a swap provided by an investment bank. A swap is a type of derivative contract where two parties agree to exchange (“swap”) one stream of flows for another.
Smart beta is a term for any rules-based strategy that uses characteristics other than just geography and market capitalisation to select and weight the securities of the index.
Investment involves risks. The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested. Past performance is not indicative of future performance.
There are specific risks involved with investing in cryptocurrencies exchange-traded funds/products. Investing in cryptocurrencies is high risk. Cryptocurrencies do not have any intrinsic value and may become worthless. Cryptocurrencies are subject to extreme price volatility and the price of cryptocurrency can be affected by factors such as global or regional political conditions and regulatory or judicial events.
There are risks involved with investing in Exchange-traded Funds (“ETFs”), including possible loss of money. Index-based ETFs are not actively managed, and the return of index-based ETFs may not match the return of the Underlying index. Actively managed ETFs do not necessarily seek to replicate the performance of a specific index. Both index-based and actively managed ETFs are subject to risks similar to those of stocks, including those related to short selling and margin maintenance requirements. Ordinary brokerage commissions apply. Equity risk is the risk that the value of equity securities, including common stocks, may fail due to both changes in general economic and political conditions that impact the market as a whole, as well as factors that directly related to a specific company or its industry.
There are specific risks involved with investing in Exchange-traded Commodities (“ETCs”). Instruments providing exposure to commodities are generally considered to be high risk which means there is a greater risk of large fluctuations in the value of the instrument. For the ETCs which is linked to a single precious metal, being gold, silver, platinum or palladium (each a “Precious Metal”), if the issuer cannot pay the specified return, the precious metal will be used to repay investors. Investors will have no claim on the other assets of the Issuer. The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates between base currency and trading currency. It is not a capital protection product; investors may not get back the full amount invested.
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