Invesco is expanding its range of ETFs tracking Nasdaq indices with the launch of the Invesco NASDAQ-100 Equal Weight Ucits ETF.
The investment firm said the new addition offers investors a different perspective on Nasdaq’s flagship index, providing a balanced exposure across all 100 stocks by following an index that weights each constituent equally.
The standard Nasdaq-100 index has delivered a 460% gain over the past decade, driven by the growth of mega-cap stocks like Apple, Microsoft, Alphabet and Amazon, explained Invesco. However, some investors prefer to avoid concentration in a few companies and seek a more diversified exposure, it added.
The NASDAQ-100 Equal Weighted Index presents an alternative for investors who want exposure to the long-term growth potential of Nasdaq-listed companies.
The NASDAQ-100 Equal Weighted Index consists of the same constituents as the NASDAQ-100 Index but assigns equal weight to each issuer during quarterly rebalancing rather than based on market capitalisation. Invesco’s ETF tracks this index and aims to maintain holdings in line with the index’s weightings, adjusting them during rebalancing.
The newly launched Invesco ETF is the only product in Europe that tracks this equal-weighted index, offering a more balanced exposure to a variety of companies, including potential mega-caps of the future, added Invesco.
Chris Mellor, head of EMEA equity ETF product management at Invesco, said: “Nasdaq was once seen as primarily a technology index, and of course, much of its success has been driven by tech giants. However, it is also home to companies in other sectors, including those traditionally viewed as more defensive.
“Innovation is the thread stitching all these Nasdaq-listed companies together, whether in terms of the industry in which the company is operating or the dynamism of its management. This equal-weighted ETF spreads exposure evenly across all these opportunities.”
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