Invesco has launched 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,” says 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 per cent of the index weight as compared to the equal weight version in which the top 50 stocks are only 16 per cent of the index weight. The equal-weight strategy of EQE can help mitigate that risk, and provide greater diversification potential.”
EQE tracks the S&P Europe 350 Equal Weight Index, which weights each company equally at each quarterly rebalancing.
