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Invesco launches Nasdaq ‘next generation’ ETF

Invesco launches Nasdaq ‘next generation’ ETF

Invesco is launching a US mid cap ETF investing in the ‘next generation of innovators’ on the Nasdaq.

The Invesco Nasdaq Next Generation 100 Ucits ETF, will track the mid-cap index of the same name that launched in August 2020.

The Index is comprised of the largest 100 Nasdaq-listed companies outside of the NASDAQ-100 Index.

Like the large-cap Nasdaq 100 index, it excludes financial companies.

“We have worked with Nasdaq for more than 20 years and have built a long-term track record of delivering efficient and targeted exposure to the Nasdaq 100 index,” said Gary Buxton, head of EMEA ETFs and indexed strategies at Invesco.

“Now, we are delighted to bring to the European market the first ETF capturing the opportunities of tomorrow’s most innovative companies.”

Constituents of the Nasdaq Next Generation 100 index are capped at 4 per cent. 

The largest sectors represented here are technology and consumer services at 33 per cent and 22.7 per cent, respectively. 

The ETF has an ongoing charge figure of 0.25 per cent per annum and is available to trade in either USD or GBP share classes.  

Elsewhere, Invesco is launching a synthetically replicated version of its $5.5bn Invesco Nasdaq 100 Ucits ETF. This will engage with counterparties through the use of swap contracts.

This fund will have an OCF of 0.20 per cent. 

“With the new EQQS ETF, we now offer low-cost physical and synthetic ETFs on this important large-cap growth index,” said Chris Mellor, head of EMEA equity and commodity ETF product management at Invesco.

“Investors looking for efficient exposure just need to choose which replication method best suits their individual preferences.”

Jon Yarker is a freelance reporter for FTAdviser