Invesco ETF launches one new NASDAQ Biotech UCITS ETF on the LSE

Invesco ETF Launches one new Invesco NASDAQ Biotech UCITS ETF Acc on the London Stock Exchange

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By ETFWorld.co.uk

Gary Buxton, Head of ETFs and Index Strategies for EMEA and APAC at Invesco

Invesco NASDAQ Biotech UCITS ETF Acc

Product description

The Invesco NASDAQ Biotech UCITS ETF Acc aims to provide the total return performance of the NASDAQ Biotechnology Index, less the impact of fees.

The Reference Index comprises biotechnology and pharmaceuticals companies (as defined by ICB) listed on the NASDAQ Stock Market. Stocks are filtered to meet minimum market capitalisation and liquidity requirements. They are then weighted by modified market capitalisation: the largest five constituents are capped at 8%; the remaining constituents are capped at 4%. The Reference Index is rebalanced quarterly and reviewed annually in December.

The fund aims to achieve its objective by holding a basket of equities, which typically delivers most of the fund’s return but ordinarily would not be the same as those in the Reference Index. The fund will also use unfunded swaps, which are contracts whereby one or more approved counterparties agrees to exchange with the fund any difference between the returns of the Reference Index and the basket of equities held. The aim is to achieve a closer and more consistent performance relative to the Reference Index than would generally be possible through physical replication alone.

This ETF is passively managed.

Source: ETFWorld.co.uk