05:50:26 EDT Tue 14 May 2024
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Invesco ETFs roll out for trading

2023-07-27 11:30 ET - News Release

See News Release (C-IGET) Invesco Morningstar Global Energy Transition

Mr. Pat Chiefalo of Invesco Canada reports

INVESCO CANADA LAUNCHES THREE ETFS

Invesco Canada Ltd. has launched 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 lineup 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 and 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."

The attached table shows the three ETFs launching today.

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 reweights 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 multifactor 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 U.S. Dynamic Multifactor Index, which reflects a dynamic combination of factor exposures drawn from constituent stocks of the FTSE Developed ex U.S. Index. Like the large-cap U.S. version, IIMF then reweights 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 ETFs," explained Mr. 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 U.S. 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 table has now closed. Units in the ETFs will be available for trading on the Toronto Stock Exchange when the market opens today.

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