Build your portfolio with our range of efficient core ETFs

Portfolio funds - offering efficient access to core benchmarks

Value icon  Low cost

  Some of the lowest cost products available for key benchmark indices

 

Efficient  Efficient

  Products designed to deliver consistent tracking of the reference indices

 

Broad choice  Broad choice

  Range of equity, fixed income, and commodity exposures

 

When you're looking for passive exposure to traditional market-cap weighted benchmarks, you're likely to favour products that deliver the performance as cost effectively as possible. 

Our "portfolio funds" are among the lowest cost available for exposure to key equity, fixed income and commodity benchmarks. The following chart shows our ongoing charges as well as the average cost paid by investors in competitor products.

 

The ongoing charges of our core beta products versus those for the rest of the industry.

Source: Morningstar, universe of European-domiciled ETPs tracking the same index, as of 31st January 2020. The Invesco Physical Gold ETC fee is as at 3rd February 2020. Fee range excludes Invesco products.

 

It's not just about cost

We realise that a low headline fee only tells part of the story. Other factors to consider include the fund’s transaction costs, tax treatment and how effectively it deals with dividends.

Our ETFs are designed to provide efficient and consistent tracking of their reference indices, net of charges including transaction costs. When we create an ETF, we can replicate its index in a few different ways, and we will choose the most efficient method on a case-by-case basis.

Factors we consider include:

  • The number of constituents in the index
  • How often the index is rebalanced
  • How easy the securities can be bought and sold
  • Any tax implications of one method over another
  • How the ETF can account for dividends

For our ETFs that use swaps, we seek to reduce the counterparty risk by:

  • Using multiple counterparties to reduce the impact if one were to default
  • Holding a basket of securities rather than cash to use if a counterparty defaults 
  • Resetting the swaps to zero when certain conditions are met; this is often daily.

 

Example of our synthetic ETF v largest competing physical ETF, both tracking the MSCI Emerging Markets Index.

Source: Invesco, Bloomberg as of 24 January 2020. Past performance is not a reliable indicator of the future returns. Comparison is of Invesco MSCI Emerging Markets UCTIS ETF, and iShares MSCI EM UCITS ETF USD Dist, the largest physically replicating competitor by total assets tracking the MSCI Emerging Net Total Return USD. This comparison is made for illustrative purposes only and is not intended to suggest that either replication method will outperform the other. Risks specific to the ETF can be found in the KIID on the website.

 

Other considerations

Our ETFs are available to trade both on-exchange and "over the counter" (OTC). In addition to being sufficiently liquid, our ETFs tend to trade on relatively tight and consistent bid-offer spreads. For very large trades, or if you’re looking to switch from another ETF, we can offer guidance on your trading options. Please contact us for further information.    

We are completely transparent in terms of performance, costs and risk. All holdings of our products are available daily on the website.

 

Find out more

Please click on any of the below indices to find out more about our ETF.

 

North America UK & Europe
S&P 500 0.05% EURO STOXX 50 0.05% Euro Govt Bond 1-3 yr 0.10%
MSCI USA 0.05% MSCI Europe 0.19% Euro Govt Bond 3-5 yr 0.10%
NASDAQ-100 0.30% MSCI Europe ex UK 0.20% Euro Govt Bond 5-7 yr 0.10%
USD Corps 0.10% STOXX Europe 600 0.19% Euro Govt Bond 7-10 yr 0.10%
USD FRNs 0.10% FTSE 100 0.09% Euro Govt Bond All 0.10%
US Treasury 0-1 yr 0.06% Euro Corps 0.10%    
US Treasury 1-3 yr 0.06% GBP Corps 0.10%    
US Treasury 3-7 yr 0.06% EUR FRNs 0.12%    
US Treasury 7-10 yr 0.06% UK Gilt 1-5 yr 0.06%    
US Treasury All 0.06% UK Gilts All 0.06%    
           
Global   Commodities   Emerging Markets  
MSCI World 0.19% Gold 0.19% MSCI EM

0.29%

    BCOM 0.19% EM USD Bond 0.35%
Asia          
MSCI Japan 0.19%        
JPX-Nikkei 400 0.19%        

Ongoing charge shown is for the Invesco product tracking the relevant benchmark, as at 03 February 2020. Risks specific to each product can be found in the relevant KIID/KID on our website.

 

Investment risks

The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

ETFs focused on one country will have greater concentration risk than if more geographically diversified. Investors in emerging markets ETFs should be prepared to accept a higher degree of risk than for an ETF investing in the securities in other more established economies of developed countries, as difficulties in dealing, settlement and custody could arise.

In order to reach their investment objectives, some of the products enter into swap agreements, which provide the performance of the Reference Index, and may imply a range of risks which could lead to an adjustment or even the early termination of the swap agreement.

The products will not replicate the performance of their Reference Indices perfectly; this is because the products will incur drags on performance such as expenses and transactions costs, which the Reference Indices are not subject to. If the product is unable to hold the securities in the exact proportion required, this will affect its ability to track the Reference Index.

Risks specific to each product can be found in the relevant KIID/KID.

 

Important information

Investors should note that the price of your investment may go down as well as up. As a result, you may not get back the amount of capital you invest.

This communication contains information that is for discussion purposes only, and is intended only for professional investors pursuant to Directive 2004/39/EC (MIFID) Annex II Section I in Austria, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Spain, Sweden and the UK, Qualified Clients in Israel, and Qualified Investors in Switzerland. The products may only be offered and the Key Investor Information Document (KIID), Key Information Document (KID)and prospectus (the “offering documents”) and marketing materials may only be distributed in other jurisdictions in compliance with private placement rules and local regulations. This communication is not for distribution to, or for the attention of, US or Canadian persons.

Without limitation, this communication does not constitute an offer or a recommendation to enter into any transaction. When making an investment decision, you should rely solely on the final documentation and any prospectus relating to the transaction and not this summary. Investment strategies involve numerous risks. Any calculations and charts set out herein are indicative only, make certain assumptions and no guarantee is given that future performance or results will reflect the information herein. Investors should consult their own business, tax, legal and accounting advisors with respect to this proposed transaction and they should refrain from entering into a transaction unless they have fully understood the associated risks and have independently determined that the transaction is appropriate for them. In no way should we be deemed to be holding out as financial advisers or fiduciaries of the recipient hereof.

UCITS ETF’s units / shares purchased on the secondary market cannot usually be sold directly back to UCITS ETF. Investors must buy and sell units / shares on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units / shares and may receive less than the current net asset value when selling them.

In Israel, the contents of this document are restricted to Qualified Clients (pursuant to the First Schedule to the Israeli Regulation of Investment Advice, Investment Marketing and Investment Portfolio Management Law, 1995) only and are not intended for retail or private investors who are not Qualified Clients.

German investors may obtain the offering documents free of charge in paper or electronic form from the issuer or from the German information and paying agent (Marcard, Stein & Co AG, Ballindamm 36, 20095 Hamburg, Germany).

The representative and paying agent for the sub-funds of Invesco Markets plc, Invesco Markets II plc, and PIMCO Fixed Income Source ETFs plc in Switzerland is BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich, Switzerland. The offering documents, articles of incorporation and annual and semi-annual reports may be obtained free of charge from the representative in Switzerland. The ETFs are domiciled in Ireland.

The publication of the supplement in Italy does not imply any judgment by CONSOB on an investment in a product. The list of products listed in Italy, and the offering documents for and the supplement of each ETF are available: (i) at etf.invesco.com (along with the audited annual report and the unaudited half-year reports); and (ii) on the website of the Italian Stock Exchange borsaitaliana.it.

All investment decisions must be based only on information contained in the prospectus, the KIID/KID, the supplement and in the most recent audited annual report or unaudited semi-annual report. Investors should read the specific risks of any product they plan to invest in, which are noted in the prospectus, the KIID/KID and the supplement. Past performance does not guarantee similar future performance. For details on fees and other charges, please consult the prospectus, the KIID/KID and the supplement of each product.

This has been communicated by Invesco, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire, RG9 1HH, authorised and regulated by the Financial Conduct Authority; Invesco Asset Management SA, 16-18 rue de Londres, 75009 Paris, France; Invesco Asset Management Deutschland GmbH, An der Welle 5, 60322 Frankfurt am Main, Germany; Invesco Asset Management (Schweiz) AG, Talacker 34, 8001 Zurich, Switzerland; and Invesco Asset Management Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire, RG9 1HH, United Kingdom. Authorised and regulated by the Financial Conduct Authority.

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