Invesco Expands ETF Lineup with 3 New Active Strategies
- Invesco's new funds aim to meet growing investor demand for active strategies in the ETF format.
- The products include hedged equity, contrarian value and managed futures approaches.
- Annual expense ratios range from 0.35% to 0.75%.
Invesco Ltd. (IVZ) announced Wednesday the launch of three new actively managed ETFs. The new funds—the Invesco QQQ Hedged Advantage ETF (QQHG), the Invesco Comstock Contrarian Equity ETF (CSTK) and the Invesco Managed Futures Strategy ETF (IMF)—expand the company's offerings in the active ETF space.
The launch comes as the investment industry experiences growth in active ETFs, providing investors with additional options beyond traditional index-based products during uncertain market conditions.
According to the company's press release, Brian Hartigan, global head of ETFs and index investments, noted that investors have expressed interest in accessing active strategies through ETF vehicles.
"As actively managed ETFs change, so does the conversation of how they fit into investors' portfolios," Hartigan said in the release. "As we advance our strategies, we will continue to educate investors so they can evaluate new products from multiple angles."
Different Investment Approaches
QQHG: Each fund takes a distinctive approach to the market. QQHG aims to provide capital appreciation by investing in equity securities that track the Nasdaq-100 index while using an options overlay strategy to partially hedge against market declines, according to the prospectus. With a 0.45% expense ratio, the ETF will employ put option spreads and covered call strategies designed to limit downside risk.
CSTK: Meanwhile, CSTK pursues total return through capital growth and income by investing at least 80% of its assets in common stocks. According to the fund documents, the portfolio managers focus on identifying well-established, undervalued companies with potential for improved valuations. The fund charges a 0.35% expense ratio.
IMF: The third offering, IMF, seeks long-term capital appreciation through both long and short positions in derivative contracts linked to over 50 global markets, including stock indices, bond indices, commodity indices and currencies. The fund will charge 0.65% in annual expenses after fee waivers through August 2026.
New Funds Out Now
These new strategies "tap into several long-standing Invesco Portfolio Management teams," the Atlanta-based asset manager noted in its release.
According to each prospectus, the funds will be listed on major exchanges, with QQHG trading on the Nasdaq Stock Market, while CSTK and IMF will trade on the Cboe BZX Exchange.
