Invesco has expanded its thematic ETF offerings with the launch of three new funds targeting AI, cybersecurity and defence, aiming to give investors targeted access to high-growth sectors.
Each ETF will track a global benchmark index created by Kensho, the specialist branch of S&P Global Indices known for its technology and AI-driven analysis.
The Invesco Artificial Intelligence Enablers Ucits ETF will focus on companies advancing AI technologies and infrastructure, enabling investors to capitalise on the rapid evolution of AI.
The Invesco Cybersecurity Ucits ETF will target firms specialising in protecting digital assets, a sector that has become critical amid rising cyber threats.
Lastly, the Invesco Defence Innovation Ucits ETF will track companies at the forefront of developing defence technologies, including sophisticated weapons systems and border security solutions.
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Gary Buxton, head of Emea and Apac ETFs at Invesco, said: “We chose to work with Kensho for their intelligent approach to applying AI but also their expertise in understanding these rapidly evolving new technologies. Plus, their being part of the S&P Global Index group should provide investors with a higher degree of confidence in the administration.”
Kensho employs natural language processing to screen a global stock universe, identifying companies with strong exposure to the target themes. Each company is classified as either “core” or “non-core” based on their alignment to the theme, with core companies given additional weight to enhance thematic exposure.
In line with ESG principles, the indices for AI and cybersecurity apply screens to exclude companies involved in controversial activities or those with low ESG scores.
Chris Mellor, head of Emea ETF equity product management at Invesco, said: “Our new thematic ETFs stand apart on several key factors. The first is on cost. At 0.35% per annum, they each have the lowest – or joint lowest – annual charges among competing products. The second is on the expertise of the index provider. Finally, our ETFs emphasise those companies most involved and capable of making the greatest impact for investors.”
