Invesco Canada Ltd has launched four new index mutual funds structured as funds-of-ETFs.
These new products create the potential for all Canadian investors to access four of Invesco’s most innovative ETF launches of 2020 through either an ETF or a mutual fund, allowing them the opportunity to choose the vehicle that best suits their investment objectives.
“In 2020, Invesco launched a line-up of ETFs that showcase our key strengths and longstanding partnerships. Based on interest in our ESG ETFs and the Nasdaq Innovation suite, we are expanding the series to Canadian investors,” says Jason MacKay, Head of Wealth Management Intermediaries, Canada. “Wrapping these ETFs in an index mutual fund structure offers Canadian investors the ability to easily access four key indexes through another investment structure.”
The four new index mutual funds, which will generally invest one-for-one in the four ETFs, are:
The Invesco S&P 500 ESG Index ETF Fund which seeks to replicate the performance of the S&P 500 ESG Index on a hedged basis. The S&P 500 ESG Index uses S&P DJI’s ESG criteria to select companies from S&P 500 Index. This methodology offers investors access to notable US companies that meet certain ESG criteria while still offering similar overall industry group weights to the S&P 500 Index. The fund intends to directly invest in the Invesco S&P 500 ESG Index ETF (ESG.F) to achieve its investment objective.
The Invesco S&P/TSX Composite ESG Index ETF Class which seeks to replicate the performance of the S&P/TSX Composite ESG Index. The S&P/TSX Composite ESG Index uses S&P DJI’s ESG criteria to select companies from the benchmark Canadian S&P/TSX Composite Index. This methodology offers investors access to notable Canadian companies that meet certain ESG criteria while still offering similar overall industry group weights to the S&P/TSX Composite Index. This fund intends to directly invest in the Invesco S&P/TSX Composite ESG Index ETF (Ticker: ESGC) to achieve its investment objective.
The Invesco NASDAQ 100 Index ETF Fund, which seeks to replicate the performance of the NASDAQ-100 Index on a hedged basis. The NASDAQ 100 Index is comprised of the largest companies (ex-financials) on The Nasdaq Stock Market and since its inception 30-years ago has been one of the most recognized large-cap growth indexes. This fund intends to directly invest in the U.S. listed Invesco NASDAQ 100 ETF (Ticker: QQQM) to achieve its investment objective.
The Invesco NASDAQ Next Gen 100 Index ETF Fund, which seeks to replicate the performance of the NASDAQ Next Generation 100 Index on a hedged* basis. The NASDAQ Next Generation 100 Index is comprised of the 100 largest non-financial companies listed on The NASDAQ Stock Market outside of the NASDAQ-100 Index. The fund intends to invest in the U.S. listed Invesco NASDAQ Next Gen 100 ETF (Ticker: QQQJ) to achieve its investment objective.
All four funds will be offered in Series A, Series F and Series PTF. Series A will be offered in a front-end sales charge (SC) option only. Series F and Series PTF will be offered in a no sales charge (NSC) option.
“Offering Canadian investors these four mutual funds represent the next step in the continued democratisation of investing,” says MacKay. “Advancing the growing concept that personalisation in investing continues to drive benefits to the end investor, regardless of the fund structure.”
