Invesco Canada has launched two new ETFs on Toronto Stock Exchange that target stocks listed on Nasdaq.
Pat Chiefalo, Head of Canada, Invesco ETFs & Indexed Strategies.
The Invesco Nasdaq 100 Equal Weight Index ETF provides exposure to the Nasdaq 100 while assigning each constituent an equal portfolio weight.
Invesco’s second launch is the Invesco Nasdaq Next Gen 100 ETF which targets mid-cap companies directly outside of the Nasdaq 100.
Pat Chiefalo, Head of Canada, Invesco ETFs & Indexed Strategies, said: “The launch of two new Invesco Nasdaq ETFs reaffirms the commitment of Invesco’s Canadian ETF business to providing our clients with products that access the themes and companies at the forefront of innovation. Now Canadian investors can choose several unique ways to gain exposure to the category-defining companies listed on the Nasdaq Stock Market.”
Sean Wasserman, Vice President and Head of Index and Advisor Solutions at Nasdaq, added: “We’re excited to partner again with Invesco and bring several new Nasdaq Index strategies to the Canadian ETF market. Through the years, Invesco and Nasdaq have continued to grow our partnership, working constructively to find new and unique ways to ensure the same innovation found in Nasdaq- listed companies is echoed in the Invesco Nasdaq ETFs.”
Nasdaq 100 Equal Weight
The Invesco Nasdaq 100 Equal Weight Index ETF is linked to the Nasdaq 100 Equal Weighted Index which re-weights the Nasdaq 100 so that each company receives a weight of 1% as of each quarterly rebalance.
Widely perceived as a proxy for innovative growth stocks, the Nasdaq 100 consists of 100 of the largest US and international non-financial companies by market capitalization listed on Nasdaq, subject to various diversification requirements. It reflects companies across major industry groups including computer hardware and software, communications, retail/wholesale trade, and biotechnology.
The market-cap-weighted Nasdaq 100 is known for being ‘tech-heavy’ with information technology stocks accounting for roughly half of the total weight and the communication services and consumer discretionary sectors (both led by Big Tech stocks) each making up a fifth.
The equally weighted Nasdaq 100, however, delivers greater sector diversification with the largest exposures being information technology (41.0%), health care (15.4%), consumer discretionary (14.3%), communication services (12.9%), and consumer staples (7.3%). Data as of 1 June.
The fund comes with a management fee of 0.25% and is available in CAD (Ticker: QQEQ CN) and CAD-hedged (QQEQ.F CN) share classes.
Nasdaq Next Generation
The Invesco Nasdaq Next Gen 100 ETF provides exposure to mid-cap growth companies by tracking the Nasdaq Next Generation 100 Index.
The index comprises the largest 100 Nasdaq-listed companies outside of the Nasdaq 100. As with the Nasdaq 100, the index does not contain financial securities such as banking and investment companies.
Constituents are weighted by market capitalization with index reconstituted annually and rebalanced quarterly.
The largest sectors currently represented within the index are information technology (42.3%), health care (18.9%), consumer discretionary (14.6%), communication services (14.2%), and industrials (8.1%). The index is well-diversified at the stock level with the largest constituent, Crowdstrike, commanding a weight of just 2.5%.
The fund comes with a management fee of 0.20% and is also available in CAD (QQJR CN) and CAD-hedged (QQJR.F CN) share classes.
Invesco also recently trimmed the fee on the C$410 million ($340m) Invesco Nasdaq 100 Index ETF (QQC.F CN) from 0.25% to 0.20%, making it the most cost-effective ETF in Canada providing regular market-cap-weighted exposure to the Nasdaq 100.