Invesco is launching the Invesco FTSE All-World UCITS ETF, targeting investors seeking a simple and cost-effective way to gain diversified exposure to global equity markets. The ETF will track the performance of the FTSE All-World Index, providing access to over 4,000 large and mid-sized companies across 49 developed and emerging market countries. With an annual charge of 0.15%, Invesco claims it will be the lowest-cost ETF offering similar exposure in Europe.
Global equity ETFs have been highly popular among investors since 2019, attracting significant net new assets. In the first five months of 2023 alone, global equity ETFs garnered USD 13 billion, representing 43% of all equity ETF flows. Invesco’s analysis indicates a growing demand for products that combine developed and emerging market countries.
According to Gary Buxton, Head of EMEA ETFs and Indexed Strategies at Invesco, diversifying investments across various securities worldwide reduces risk compared to investing in individual stocks or a single country/region. The new ETF aims to provide investors with a well-diversified portfolio by offering exposure to global equity markets at a low cost.
The FTSE All-World Index consists of large- and mid-cap companies from developed and emerging market countries. The index weights each stock based on its market capitalization and undergoes semi-annual rebalancing. Invesco’s ETF will employ a sampling strategy, utilizing quantitative analysis to select securities based on factors like country weights, industry sector weights, and liquidity. This approach aims to closely replicate the index’s performance while reducing costs associated with investing in every security in the index.