Alternative Investments/ESG: Invesco Launches Four Active Non-Transparent ETFs
Two out of the four new launches have an ESG focus.
Investors get the opportunity to avail of Invesco’s investment expertise in their first suite of active, non-transparent ETFs. Other features of the ETFs that investors will find attractive are tax efficiency, intraday tradability, and an arbitrage mechanism.
Besides, the four ETFs also offer a very cost-effective structure. (Yahoo Finance)
Invesco’s four new ETFs
The new ETF suite comprises:
Invesco Focused Discovery Growth ETF (Ticker: IVDG)
This ETF will invest in high-growth companies in the early stages of their business cycle. The ETF aims at capital appreciation and has a total expense ratio of 0.59%.
Invesco Select Growth ETF (Ticker: IVSG)
This ETF shoots for long-term capital appreciation and will invest in large and mid-cap stocks with the potential for attractive growth. It has a total expense ratio of 0.48%.
Invesco Real Assets ESG ETF (Ticker: IVRA)
This ETF will try to obtain the best of both worlds – capital appreciation along with a stream of current income. Its mandate is to invest in real assets such as infrastructure, real estate, natural resources, and timber. However, the selected companies must meet Invesco’s proprietary ESG standards. The ETF charges 0.59%.
Invesco US Large Cap Core ESG ETF (Ticker: IVLC)
This ETF targets capital appreciation by investing in large-cap US stocks that also meet Invesco’s ESG standards.
The fund will apply a charge of 0.48%.
Innovative investment products from Invesco
“Today’s announcement is more than a product launch, it is another step towards Invesco’s goal to offer a range of innovative investment products that help clients pursue their desired outcomes,” said Anna Paglia, Global Head of ETFs and Indexed Strategies in a statement. “Our four active non-transparent ETFs offer a bridge between traditional active and passive strategies, harnessing the strength of Invesco’s active managers within an ETF wrapper.”
The fund manager’s active non-transparent model will publish key data metrics each day by using a ‘substitute basket’ to offer a clear view into each ETF’s portfolio value, thus providing multiple creation and redemption windows to authorized participants throughout the day.
The ETFs’ holdings will not be fully disclosed to keep the ETF’s strategy confidential. This will prevent front-running by market operators and speculators by keeping a portion of the fund’s holdings secret from the market.
Related Story: Semi-transparent ETFs Get Advisor Love
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