Invesco launches equal-weight European ETF

Invesco has launched the Invesco S&P Europe 350 Equal Weight Index ETF, the first fund in Canada to offer equal weighting to the companies in that index.

The fund, which started trading Thursday, is designed to help mitigate “substantial concentration risk” for investors who might otherwise invest in European equities through a cap-weighted index, said Jasmit Bhandal, head of ETF Product Strategy and Development at Invesco Canada, in a release.

“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 said, citing S&P Dow Jones Indices data as of Aug. 31. 

The ETF is available in a CAD-unhedged (EQE) and CAD-hedged (EQE.F) series. The launch follows the release of the Invesco S&P 500 Equal Weight Index ETF in May, expanding the company’s equal-weight suite.  

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