ETF will provide equal-weight exposure to European index firms
A new ETF has been launched by Invesco to provide Canadian investors with equal-weight exposure to the companies that make up the S&P Europe 350® Index.
The Invesco S&P Europe 350 Equal Weight Index ETF (EQE) expands the firm’s equal-weight offering and is the first-of-its-kind in Canada.
“Investors seeking low-cost exposure to European equities through a cap-weighted index may inadvertently take on substantial concentration risk,” said Jasmit Bhandal, Head of ETF Product Strategy and Development with Invesco Canada. “The top 50 stocks in the S&P Europe 350 account for 49% of the index weight as compared to the equal weight version in which the top 50 stocks are only 16% of the index weight.”
Bhandal added that the new fund can help mitigate the risk and give greater potential diversification.
Quarterly rebalancing will help sever the link between a stock’s price and its weight within the portfolio.
The fund launched on September 27 on the NEO Exchange.
