Invesco has cross-listed the Invesco Goldman Sachs Equity Factor Index Emerging Markets UCITS ETF on Deutsche Börse and Borsa Italiana.
The ETF provides broad exposure to emerging market equities that have been weighted according to a combination of momentum, value, quality, size, and low beta factors.
The fund, which debuted on London Stock Exchange in mid-September, is the third product in the firm’s range of multi-factor ETFs linked to smart beta indices developed by investment banking titan Goldman Sachs.
The ETF provides investors with exposure to emerging market equities weighted according to a multi-factor process.
The underlying Goldman Sachs Equity Factor Emerging Markets Index aims to deliver consistent outperformance versus traditional emerging markets cap-weighted benchmarks, on both an absolute and risk-adjusted basis, by targeting returns attributable to the momentum, value, quality, size, and low beta equity factors.
The index methodology assigns five factor scores to each stock within the parent MSCI Emerging Markets Index universe based on a stock’s exposure to each of the five factors. It then uses an optimization process to weight the stocks such as to maximize the value of an ‘objective function’ that represents the sum of factor scores across all stocks.
This optimization process includes several layers of constraints at the stock, sector, and country levels in order to maintain a similar characteristic profile as the parent index. The final index provides exposure to more than 300 stocks across 30 emerging markets around the world.
The fund is available to trade on Deutsche Börse and Borsa Italiana under the tickers FEEM GY and EFIM IM respectively. Both new listings trade in euros and accumulate income within their portfolios. The London listing is available in US dollars (EFIM LN) and pound sterling (EFEP LN).
The ETF comes with a total expense ratio (TER) of 0.85%, consisting of a management fee of 0.65% and a swap fee of 0.20%. Since launch it has accumulated over $120 million in assets under management.
Invesco also offers global and European versions of the strategy with the entire suite housing well over $1 billion in AUM.
The Invesco Goldman Sachs Equity Factor Index World ETF has some $610m in AUM and comes with a TER of 0.55%, while the Goldman Sachs Equity Factor Index Europe ETF contains around $420m in AUM and charges 0.45%. Both funds are available to trade on London Stock Exchange, Deutsche Börse, Borsa Italiana, as well as SIX Swiss Exchange.