The latest news in investment offerings, financial products and other services relative to wealth advisors and their clients.

Invesco

Investment manager Invesco has just launched an
exchange-traded fund in Europe which offers
investors access to the long-term growth potential of China.

The fund gives investors access to the ChiNext 50 index, which
reflects the performance of 50 of the largest and most liquid
securities listed on the ChiNext market of the Shenzhen Stock
Exchange, the firm said in a statement. The Invesco ChiNext 50
UCITS ETF, which targets Chinese companies, will follow a capped
version of the index to reduce concentration risk and ensure
sufficient diversification. 

“In collaboration with Invesco Great Wall, our China mainland
investment management joint venture and a leading China market
specialist, we are pleased to partner with the Shenzhen Stock
Exchange on the launch of a UCITS ETF linked to the ChiNext 50,”
Gary Buxton, head of EMEA and APAC ETFs and indexed strategies at
Invesco, said.  

“While the index has no explicit sector requirements or
restrictions, investors can expect it to be naturally overweight
technology, industrials and healthcare. The fund will invest in
companies involved in innovative, fast-growing areas such as
artificial intelligence, electric vehicles, renewable energy,
robotics, automation and biotech,” Chris Mellor, head of EMEA
Equity ETF product management at Invesco, added.

The ETF will employ a replication method that seeks to hold, as
far as possible and practicable, all the securities in the index
in their respective weightings, but the fund will employ sampling
techniques in circumstances where this is not reasonably
possible, the firm said.