Invesco has launched a new factor-based ETF in Europe providing low volatility exposure to the S&P 500.

The ETF delivers low volatility exposure to the S&P 500.

The Invesco S&P 500 Low Volatility UCITS ETF has been listed on London Stock Exchange in US dollars (SPLW LN) and pound sterling (SPLG LN).

The fund is linked to the S&P 500 Low Volatility Index which consists of the 100 least volatile stocks in the S&P 500 based on the standard deviation of daily price returns over the prior calendar year.

Constituents are weighted by the inverse of their volatility with the least volatile stocks receiving the highest weights.

The index is reconstituted and rebalanced on a quarterly basis.

The fund comes with an expense ratio of 0.25%. Income is accumulated within the portfolio.

There are several ETFs in Europe providing low volatility exposure to US equities; however, the most notable is the iShares Edge S&P 500 Minimum Volatility UCITS ETF (SPMD LN) which houses $1.5 billion in assets and is also the cheapest with an expense ratio of 0.20%.