Invesco Launches Three New Overnight Return Swap ETFs in Collaboration with Solactive

Invesco is expanding its product range with the launch of three new synthetic replication ETFs, born from the collaboration with index provider Solactive.

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By ETFWorld.co.uk

Matt Tagliani, Head of EMEA ETF Product at Invesco

The funds, named Invesco Overnight Return Swap UCITS ETFs, debuted on European exchanges on October 30, 2025.

The objective of the new ETFs is to offer investors, both institutional and retail, an efficient and transparent tool to access the daily compounded return of the main overnight interest rates denominated in Euro, British Pound, and US Dollar. These products position themselves as innovative tools for cash management.

The Three ETFs in Detail

Here are the three funds launched by Invesco:

• Invesco EUR Overnight Return Swap UCITS ETF (Ticker: EONS): Replicates the performance of the Solactive €STR Overnight Total Return Index. It is listed on the SIX Swiss Exchange, Xetra, and Euronext Milan.

• Invesco GBP Overnight Return Swap UCITS ETF (Ticker: GONS): Replicates the performance of the Solactive SONIA T+2 Settlement Daily Total Return Index. It is listed on the London Stock Exchange.

• Invesco USD Overnight Return Swap UCITS ETF (Ticker: UONS): Replicates the performance of the Solactive SOFR T+2 Settlement Daily Total Return Index. It is listed on the London Stock Exchange, Euronext Milan, and the SIX Swiss Exchange.

The Methodology of the Solactive Indices

The Solactive indices are part of the “Solactive Money Market Index Series”, a family of indices designed to accurately reflect the interest accrued on hypothetical overnight deposits. The methodology captures the daily compounding of the benchmark rates €STR (Euro), SONIA (Pound Sterling), and SOFR (US Dollar), without including any spread. It incorporates a one-day lag for the interest rate, a two-day settlement offset, and an appropriate day count convention, thus providing a robust and transparent benchmark for cash management strategies.

Statements from the Key Figures

Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “We are delighted to extend our collaboration with Invesco on the launch of the Invesco Overnight Return Swap UCITS ETFs. As demand for transparent, regulation-aligned benchmarks grows, the Solactive Money Market Indices provide a robust foundation for investment products tailored to the needs of cash management strategies.”

Matt Tagliani, Head of EMEA ETF Product at Invesco, added: “Cash management exposures have accounted for over a third of all fixed income ETF flows this year, as lower interest rates are incentivizing investors to rethink their cash allocation. By leveraging our market-leading swap-based ETF platform, we saw a way to deliver highly liquid solutions with the potential for enhanced returns relative to overnight base rates, and we’ve been delighted to work with Solactive to develop indices that incorporate the specific nuances around settlement that would allow us to bring these products to market.”

Context of the Benchmark Rates (Online Verification)

For informational completeness, the rates tracked by the ETFs are the main “risk-free” benchmarks for their respective currencies:

• €STR (Euro Short-Term Rate): The overnight rate for the Euro area, published by the European Central Bank.

• SONIA (Sterling Overnight Index Average): The benchmark overnight rate for the British Pound.

• SOFR (Secured Overnight Financing Rate): The overnight rate for the US Dollar, based on transactions in the Treasury repo market.

Source: ETFWorld.co.uk