Invesco has expanded its range of fixed income ETFs in Europe with the launch of a sterling corporate bond fund. The Invesco GBP Corporate Bond UCITS ETF (IGCB LN) has listed on the London Stock Exchange and comes with an expense ratio of 0.10%. The fund is linked to the Bloomberg Barclays Sterling Liquid Corporate Bond Index.

By Nick Kalivas, Senior Equity ETF Strategist at Invesco.

Markets are continuing to be highly volatile, and the past two weeks have seen historic gains and losses. While I prefer to evaluate performance over longer periods, it’s understandable that investors are especially interested in the market’s daily fluctuations. Here’s what I’ll be watching in the coming week and months.

Invesco has expanded its suite of environmental, social, and governance (ESG) ETFs in Europe with the launch of the Invesco S&P 500 ESG UCITS ETF (SPXE LN) on the London Stock Exchange. The fund provides risk and return characteristics similar to that of the bellwether S&P 500 Index but with a significantly improved ESG profile. Gary Buxton, Head of EMEA ETFs at Invesco, commented, “As ESG becomes more mainstream, we believe that finding appropriate solutions is going to be increasingly relevant, for example for trustees and other investors who have a fiduciary responsibility for delivering performance.”

Invesco has listed the first ETF in Canada to provide ESG exposure to the S&P 500. The Invesco S&P 500 ESG Index ETF (ESG CN / ESG.F CN) has listed on the Toronto Stock Exchange and is linked to S&P 500 ESG Index. It aims to offer an investment profile similar to that of the bellwether S&P 500 while targeting companies that are better aligned with ESG values. Dan Draper, Global Head of Invesco ETFs, commented, “Invesco has been very deliberate in our expansion of the ETF business in Canada…we believe that the Invesco S&P 500 ESG Index ETF will build on that history.”

Invesco has introduced a new fixed income ETF in Europe with the launch of the Invesco GBP Corporate Bond ESG UCITS ETF (IGBE LN) on London Stock Exchange. The fund, which has been seeded with £25m and comes with an ongoing charge of 0.10%, combines Bloomberg’s fixed income indexing capabilities with MSCI’s ESG research to provide ethically screened exposure to sterling-denominated corporate bonds.

BlackRock has launched a new suite of target-maturity iBonds ETFs in the US providing exposure to portfolios of Treasuries maturing in a given year. The suite consists of nine ETFs tracking ICE Maturity US Treasury Indices that target bonds maturing in consecutive years from 2021 through 2029. Each fund comes with an expense ratio of 0.07%.

The Royal Mint has become the first government-owned mint in Europe to issue an exchange-traded product with the launch of the Royal Mint Physical Gold Securities ETC on the London Stock Exchange. The ETC provides exposure to allocated physical gold bars sourced in line with LBMA’s Responsible Sourcing Programme and stored in the Royal Mint’s vault in Wales. It is available to trade in USD (RMAU LN) and GBP (RMAP LN), and comes with a total expense ratio of 0.22%.

First Trust has brought another of its blockbuster US strategies to Europe with the launch of the First Trust launch Value Line Dividend Index UCITS ETF (FVD LN) on the London Stock Exchange. Linked to the Value Line Dividend Index, the fund provides exposure to a portfolio of quality US companies with low-risk and high-dividend characteristics. Gregg Guerin, Senior Product Specialist for First Trust, commented, “This latest addition to our equity solutions is a safety-first strategy that can provide investment managers with the potential for greater downside protection during periods of market volatility.”

Invesco has reduced the expense ratio on its $7.6 billion physical gold ETC, from 0.24% per annum to 0.19%. Following the reduction, the Invesco Physical Gold ETC offers the joint-lowest fixed annual fee of any physical gold exchange-traded product available in Europe. According to Invesco, it is the lowest cost when looking at total cost of exposure. Chris Mellor, Head of EMEA ETF Commodity Product Management at Invesco, commented, “For a decade now, our physical gold ETC has offered investors an easy and efficient way to gain exposure to gold, and now for an even lower cost.”

Invesco has broadened its range of US Treasury bond ETFs with the launch of the Invesco US Treasury Bond 0-1 Year UCITS ETF on the London Stock Exchange. The fund is linked to the Bloomberg Barclays US Treasury Coupons Index and comes with an expense ratio of just 0.06%, becoming Europe’s cheapest ETF to focus on Treasury securities at the shortest end of the maturity curve.