London Stock Exchange welcomes Invesco celebrating the launch of Invesco NASDAQ Next Generation 100 UCITS ETF
Today, London Stock Exchange welcomes Invesco for the launch of the first ETF in Europe that provides investors with access to the next generation of innovators: the Invesco NASDAQ Next Generation 100 UCITS ETF.
The NASDAQ 100 index has long been associated with growth and innovation, including many of today’s leading-edge companies, such as Apple, Amazon, Netflix and Microsoft. The Invesco NASDAQ Next Generation 100 UCITS ETF (London Stock Exchange ticker: EQQJ1) offers investors targeted exposure to the 101st to 200th largest NASDAQ companies excluding financials.
Gary Buxton, Head of EMEA ETFs and Indexed Strategies at Invesco, said: “We have worked with NASDAQ and London Stock Exchange for more than 20 years and have built a long-term track record of delivering efficient and targeted exposure to the NASDAQ 100 index. Now, we are delighted to bring to the European market the first ETF capturing the opportunities of tomorrow’s most innovative companies.
“One of the biggest growth drivers of NASDAQ-index companies tends to be their level of spending on research and development. By reinvesting a significant amount of their current cashflow back into the company to fund new ideas, they have shown the ability to grow revenues and earnings faster than companies that spend less. Plus, this is not just about technology companies. The next generation segment also provides significant exposure to leading-edge innovators in health care, communications, industrials and several other sectors.”
Invesco also is launching a synthetically replicated version of its US$5.5 billion EQQQ NASDAQ-100 UCITS ETF. The new Invesco NASDAQ-100 Swap UCITS ETF (London Stock Exchange ticker: EQQS2) will employ the same method as the firm uses in its other synthetic ETFs, holding a basket of high-quality securities to provide most of the return and seeking to improve tracking error by using swap contracts. The counterparties to the swaps – typically large banks and other financial institutions – agree to pay any difference between the returns of the basket of securities and the index. To reduce risk, swaps are reset when certain conditions are met, often daily.
Buxton concluded: “With the new EQQS ETF, we now offer low-cost physical and synthetic ETFs on this important large-cap growth index. Investors looking for efficient exposure just need to choose which replication method best suits their individual preferences.”
1 GBP traded share class is also available (BBG ticker: EQJS)
2 GBP traded share class is also available (BBG ticker: EQSG)
About Invesco Ltd.
Invesco Ltd. (Ticker NYSE: IVZ) is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. With offices in more than 20 countries, our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. For more information, visit invesco.com/corporate.
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The prospectus documentation describing the products, risks and related costs of Invesco's exchange-traded products as well as information on their portfolio composition are available for residents of countries where such products are authorised for sale at etf.invesco.com.
The products described on etf.invesco.com are not suitable for everyone. Investors’ capital is at risk and they may get back less than they invested. Investors should not deal in these products unless they understand their nature and the extent of their exposure to risk. The value of these products can go down as well as up and can be subject to volatility due to factors such as price changes in the underlying instrument and interest rates.
It is recommended that potential investors study the prospectus before investing.
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This communication has been issued by Invesco Investment Management Limited, Central Quay, Riverside IV, Sir John Rogerson’s Quay, Dublin 2, Ireland and Invesco Asset Management Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire, RG9 1HH, UK. Authorised and regulated by the Financial Conduct Authority.