The latest news in investment offerings, financial products and other services relative to wealth advisors and their clients.

Invesco
Investment manager Invesco has just launched an exchange-traded fund in Europe which offers investors access to the long-term growth potential of China.

The fund gives investors access to the ChiNext 50 index, which reflects the performance of 50 of the largest and most liquid securities listed on the ChiNext market of the Shenzhen Stock Exchange, the firm said in a statement. The Invesco ChiNext 50 UCITS ETF, which targets Chinese companies, will follow a capped version of the index to reduce concentration risk and ensure sufficient diversification. 

“In collaboration with Invesco Great Wall, our China mainland investment management joint venture and a leading China market specialist, we are pleased to partner with the Shenzhen Stock Exchange on the launch of a UCITS ETF linked to the ChiNext 50,” Gary Buxton, head of EMEA and APAC ETFs and indexed strategies at Invesco, said.  

“While the index has no explicit sector requirements or restrictions, investors can expect it to be naturally overweight technology, industrials and healthcare. The fund will invest in companies involved in innovative, fast-growing areas such as artificial intelligence, electric vehicles, renewable energy, robotics, automation and biotech,” Chris Mellor, head of EMEA Equity ETF product management at Invesco, added.

The ETF will employ a replication method that seeks to hold, as far as possible and practicable, all the securities in the index in their respective weightings, but the fund will employ sampling techniques in circumstances where this is not reasonably possible, the firm said.