Invesco is more than doubling the number of funds in its Enhanced Equity UCITS ETFs range, adding exposures to Global ex USA, Global Small Caps, UK and Japan, as well as All Country World (ACWI), which was launched in August 2026.
The firm writes that each fund within this range aims to outperform the relevant index, less the impact of fees, over the long-term using systematic, factor-based active management, while applying constraints to help deliver an “index like” experience, placing these funds between pure passive and traditional active strategies.
Matt Tagliani, Head of EMEA ETF Product at Invesco, says: “Active has been one of the fastest-growing ETF categories in Europe this year, with those aiming to outperform in a controlled way seeing the greatest demand. Invesco’s Enhanced Equity strategy takes a systematic approach to security selection and portfolio construction, with factor performance captured in a scalable way and applied across a large, diversified portfolio, with investors now offered a more complete set of global and regional exposures from which to select.”
Invesco’s Quantitative Strategies team apply an optimisation process based on Value, Quality and Momentum factors. The team’s proprietary model assesses the attractiveness of equities from across the specific geographical universe. The optimisation process then looks for the best trade-off between the fund’s exposure to the three factors, risk considerations and transaction costs. The entire factor assessment, modelling and portfolio construction process is repeated each month, following which the fund’s holdings are rebalanced.
Erhard Radatz, Co-CIO at Invesco Quantitative Strategies, says: “Our Enhanced Equity strategy has a track record of over 20 years. While these ETFs do not track a benchmark, we set maximum active positions for individual stocks, industries, sectors and countries, which is intended to deliver an ‘index-like experience’ for investors. Our fundamental belief, based on historical evidence, is that the combination of Value, Momentum and Quality factors has the potential to reduce volatility and help generate outperformance.”
