Invesco has lowered the fees charged on its suite of ETFs providing exposure to the various sectors of the European equity market.
Invesco has slashed the fees charged on its suite of European sector ETFs by a third.
Each of the funds in the eighteen-strong suite now come with an expense ratio of 0.20%, down from 0.30%.
Invesco’s offering is based on “supersector” subindices of the Stoxx Europe 600 which comprises large, mid, and small-cap stocks across 17 developed market countries in Europe: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.
The underlying industry taxonomy is FTSE Russell’s Industry Classification Benchmark (ICB) which groups companies based on their primary revenue sources. Currently, the ICB consists of eleven industries, and derived from these – in increasingly finer classifications – there are 20 supersectors, 45 sectors, and 173 subsectors.
Invesco’s suite covers 18 of the 20 supersectors including automobiles & parts, banks, basic resources, chemicals, construction & materials, financial services, food & beverage, health care, industrial goods & services, insurance, media, oil & gas, personal & household goods, retail, technology, telecommunications, travel & leisure, and utilities.
Constituents are weighted by float-adjusted market capitalization while capping the weight of stocks with low liquidity.
The suite provides investors with a robust toolkit to implement sector rotation strategies or to effect simple adjustments to core equity exposures in light of changes in the economic cycle or market outlook.
The funds are listed on Deutsche Börse Xetra in euros and collectively house around €370 million in assets.
Following the fee cut, the ETFs are now notably cheaper than their direct rivals – BlackRock and Lyxor also offer supersector ETFs based on the Stoxx Europe 600; however, these suites come with price tags of 0.46% and 0.30%, respectively.
The ETFs are now more in line with the GICS-defined European sector ETFs offered by State Street Global Advisors and BlackRock which come with expense ratios of 0.23% and 0.18%, respectively. These suites are based on the parent MSCI Europe Index and define their industry taxonomy according to the Global Industry Classification Standard.
Invesco’s European supersector ETF suite is outlined below:
Invesco STOXX Europe 600 Optimised Automobiles & Parts UCITS ETF (XAPS GY)
Invesco STOXX Europe 600 Optimised Bank UCITS ETF (X7PS GY)
Invesco STOXX Europe 600 Optimised Basic Resources UCITS ETF (XPPS GY)
Invesco STOXX Europe 600 Optimised Chemicals UCITS ETF (X4PS GY)
Invesco STOXX Europe 600 Optimised Construction & Materials UCITS ETF (XOPS GY)
Invesco STOXX Europe 600 Optimised Financial Services UCITS ETF (XFPS GY)
Invesco STOXX Europe 600 Optimised Food & Beverage UCITS ETF (X3PS GY)
Invesco STOXX Europe 600 Optimised Health Care UCITS ETF (XDPS GY)
Invesco STOXX Europe 600 Optimised Industrial Goods & Services UCITS ETF (XNPS GY)
Invesco STOXX Europe 600 Optimised Insurance UCITS ETF (XIPS GY)
Invesco STOXX Europe 600 Optimised Media UCITS ETF (XMPS GY)
Invesco STOXX Europe 600 Optimised Oil & Gas UCITS ETF (XEPS GY)
Invesco STOXX Europe 600 Optimised Personal & Household Goods UCITS ETF (XQPS GY)
Invesco STOXX Europe 600 Optimised Retail UCITS ETF (XRPS GY)
Invesco STOXX Europe 600 Optimised Technology UCITS ETF (X8PS GY)
Invesco STOXX Europe 600 Optimised Telecommunications UCITS ETF (XKPS GY)
Invesco STOXX Europe 600 Optimised Travel & Leisure UCITS ETF (XTPS GY)
Invesco STOXX Europe 600 Optimised Utilities UCITS ETF (X6PS GY)