Digital assets
Bitcoin and other crypto currencies may have taken the headlines, but longer-term growth could come from the technology underpinning these digital assets. Blockchain is revolutionizing the way assets are transferred, enabling companies to improve efficiency and profitability in many industries. But this is only the beginning of the story.
Capabilities
Exchange Traded Funds (ETFs)
We create new opportunities for our clients by redefining what’s possible with exchange traded funds (ETFs)
Discover our ETF capabilities
Driven by a philosophy to create new opportunities for our clients, we continually redefine and explore ways to help you reach new possibilities with our ETF platform.
Trusted
As one of the world’s largest ETF providers with over US$396 billion1 globally in ETF assets under management, we’ve been dedicated to ETF investing since 2003.
Innovation
Our culture of innovation lets us find new opportunities for investors, as well as improving the performance of core ETF exposures.
Service
We provide clients with insights on products, regulations and markets with over 70 ETF experts – including portfolio managers, product specialists and our capital markets team.
Capture long-term trends with Invesco ETFs
The world is changing faster than ever. Explore compelling long-term structural themes that can be accessed through our platform of ETFs and actively managed funds.
Biotech investments
We have all seen in the recent years the importance of innovation within the health care industry. Biotech specialists as well as more traditional pharmaceutical companies are creating solutions to meet diverse challenges, including those posed by an ageing population and increasing food scarcity.Transitioning to a sustainable future
The need to transition towards more sustainable sources of energy presents opportunities. Solar and wind are already the lowest-cost sources of electricity in many countries, while hydrogen holds the key for areas of the economy where electrification is impractical. Investors can gain exposure to specific technologies or clean energy more broadly.Accessing innovation with Nasdaq
The Nasdaq is the exchange chosen by many of today’s largest and most innovative companies as well as up-and-coming future leaders. Funds that track Nasdaq indices can provide diversified exposure* to a variety of technologies and industries, offering investors an alternative to selecting individual themes for their portfolio.*Diversification does not guarantee a profit or eliminate the risk of loss.
Our ETF platform
Gain convenient access to a variety of asset class exposures
Our ESG ETF capabilities
Environmental, Social and Governance (ESG) ETFs are growing rapidly, reaching $378 billion2 in 2022 driven by investor demand and key regulatory developments. At Invesco, we take an active approach to engagement and proxy voting – a commitment you can see with our passive ESG ETF capabilities.
We recognize that responsible investors are not all alike and investor objectives might differ from broad ESG improvements to specific targets. As investors harness the benefits of ETFs for their diverse ESG needs, our capabilities can help investors reach their goals, from broad ESG benchmark exposures to targeted thematic solutions.
Responsible Investing: From ESG integration to net zero with ETFs and indexed strategies
We believe there is significant opportunity in ESG investing with indexed strategies in the Asia Pacific region.
Recent webinar
Asian Investor previously reported that global ETF flows crossed $1T USD in 2021 with ESG ETFs garnering most interest.3 Overall indexed strategies can allow for customization of ESG preferences to tailored investment strategies. Watch the latest.
Investment Insights
ETF investing FAQs
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.
Similarities
- Both offer diversified exposure to main asset classes
- Both are open-ended
Differences
- ETFs can be bought via a stockbroker or trading platform, whereas mutual funds are bought via a fund management company.
- ETFs can be bought at any time during the day, when the exchange is open, whereas mutual funds are once per day.
- ETFs are priced throughout the day, compared to mutual funds which are usually priced once per day.
- ETFs are highly transparent, whereas it varies with mutual funds.
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 speak to us first 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 risks
-
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.
Footnotes
-
1
Invesco, as at 30 June 2022
-
2
Statista, as at February 2022, https://www.statista.com/statistics/1297487/assets-of-esg-etfs-worldwide/
-
3
ESG drives thematic ETF interest after record inflows in 2021, January 2022, ESG drives thematic ETF interest after record inflows in 2021 | Fund Managers | AsianInvestor
Meet our experts
Want to learn more?
Get in touch with our Invesco representatives for a tailored conversation on your needs.
