New index mutual funds structured as fund-of-ETFs further democratize access to innovative strategies
The momentum in launches of funds geared toward ESG and disruptive innovation continues with the launch of new mutual funds from Invesco Canada.
The four new index mutual funds, structured as fund-of-ETFs, give Canadian investors an additional vehicle to access the strategies behind four of the firm’s most innovative ETF launches from 2020.
“In 2020, Invesco launched a line-up of ETFs that showcase our key strengths and longstanding partnerships,” said Jason MacKay, head of Wealth Management Intermediaries, Canada. “Based on interest in our ESG ETFs and the Nasdaq Innovation suite, we are expanding the series to Canadian investors.”
The new index mutual funds, which will generally invest one-for-one in the four ETFs, are:
- Invesco S&P 500 ESG Index ETF Fund – seeks to provide hedged exposure to the performance of the S&P 500 ESG Index. By investing directly in the Invesco S&P 500 ESG Index ETF (ESG.F), it aims to provide access to notable U.S. companies that meet certain ESG criteria while not straying significantly from the industry group weightings of the S&P 500;
- Invesco S&P/TSX Composite ESG Index ETF Class – seeks to track the performance of the S&P/TSX Composite ESG Index. Offering access to notable Canadian companies that meet certain ESG criteria while still having similar overall industry group weights to the S&P/TSX Composite, it intends to invest directly in the Invesco S&P/TSX Composite ESG Index ETF (Ticker: ESGC);
- Invesco NASDAQ 100 Index ETF Fund – targeting the performance of the NASDAQ-100 on a hedged basis, the fund intends to provide exposure to the largest companies (excluding financials) on the NASDAQ exchange by investing in the U.S.-listed Invesco NASDAQ 100 ETF (Ticker: QQQM); and
- Invesco NASDAQ Next Gen 100 Index ETF Fund – seeks to replicate the performance of the NASDAQ Next Generation 100 index on a hedged basis, it aims to provide access to the 100 largest NASDAQ-listed non-financial companies outside the NASDAQ-100 by investing in the U.S.-listed NASDAQ Next Gen 100 ETF (Ticker: QQQJ).
All four funds will be available in series A, series F, and series PTF units, with series A units offered exclusively through a front-end sales charge (SC) option and series F and PTF units in a no sales charge (NSC) option.
“Offering Canadian investors these four mutual funds represent the next step in the continued democratization of investing,” MacKay said. “Advancing the growing concept that personalization in investing continues to drive benefits to the end investor, regardless of the fund structure.”