NEO is proud to welcome back Invesco Ltd. (“Invesco”) to celebrate the launch of the first ever passive index tracking Platform Traded Funds (“PTFs™”). Leveraging NEO’s unique fund distribution platform, advisors purchase and redeem PTFs using the same tools as those used for buying and selling ETFs, with the difference of all trades being executed at net asset value.
Invesco, a leading global asset manager, has made two ESG ETFs and two ETFs from the QQQ Innovation suite available to Canadian investors as PTFs under a no sales charge (“NSC”) option. This marks the first time a fund manufacturer has made passive index tracking mutual funds available in the form of PTFs to both IIROC and MFDA advisors.
“Until today, PTFs have proven to be the most efficient vehicle for distributing, purchasing, and redeeming actively managed mutual funds. But with this exciting product launch from Invesco, PTFs will showcase their capabilities for passive, index tracking mutual funds as well,” noted Jos Schmitt, President and CEO of NEO. “Available exclusively through NEO, PTFs continue to gain popularity within the advisor community as a simple solution that addresses shortcomings with the traditional way of processing mutual funds. We are honoured to partner with Invesco to unlock the world of passive PTFs, for which we know there is substantial demand in the market.”
The four new index PTFs, which will generally invest one-for-one in the four corresponding ETFs, include:
- Invesco S&P 500 ESG Index ETF Fund (NEO:IVESG) - This fund offers access to notable US companies that meet certain ESG criteria while offering similar overall industry group weights to the S&P 500 Index.
- Invesco S&P/TSX Composite ESG Index ETF Fund (NEO:IESGC) - This fund offers investors access to notable Canadian companies that meet certain ESG criteria while offering similar overall industry group weights to the S&P/TSX Composite Index.
- Invesco NASDAQ 100 Index ETF Fund (NEO:IQQQM) - On a hedged basis, this fund seeks to replicate the performance of the NASDAQ-100 Index, one of the most recognized large-cap growth indexes, comprised of the largest non-financial companies on the Nasdaq Stock Market.
- Invesco NASDAQ Next Gen 100 Index ETF Fund (NEO:IQQQJ) - On a hedged basis, this fund seeks to replicate the performance of the NASDAQ Next Generation 100 Index, comprised of the 100 largest non-financial companies listed on the Nasdaq Stock Market, outside of the NASDAQ-100 Index.
Having recently celebrated 3 months of history in the U.S., the Invesco NASDAQ 100 Index ETF and the Invesco NASDAQ Next Gen 100 Index ETF have already assembled a combined US$1 billion in assets under management, indicating solid demand within the advisor and investor communities.
“We are excited to partner once again with NEO to launch our first four index PTFs, complementing the range of active fixed income and equity PTFs already listed on the NEO platform,” says Jason MacKay, Head of Wealth Management Intermediaries, Invesco Canada. “These products will allow all Canadian investors the ability to access four of Invesco’s most innovative ETF launches of 2020 through the vehicle that best suits their investment objectives.”
Investors can trade shares of the Invesco PTFs through their usual investment channels, including full-service dealers. Click here for a complete view of all PTFs. With more than 85 tickers available from 15 asset managers across asset classes, PTFs on NEO have raised over $1.6 billion in assets since their inception.
Founded on the principles of fairness, liquidity, efficiency, and service, NEO is a bold and disruptive capital markets technology firm that has embraced innovation and competition to make Canadian capital markets better. Launched in 2015, the NEO Exchange lists senior companies and investment products seeking a stock exchange that enables investor trust, quality liquidity, and broad awareness including unfettered access to market data. In 2016, NEO introduced Platform Traded Funds, or PTFs™, leveraging a proprietary distribution platform to make the purchase and redemption of mutual funds more efficient for dealers, investment advisors, and investors.
About Invesco Ltd.
Invesco Ltd. (NYSE:IVZ) is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Invesco’s distinctive investment teams deliver a comprehensive range of active, passive, and alternative investment capabilities. With offices in 25 countries, Invesco managed US$1.35 trillion in assets on behalf of clients worldwide as of December 31, 2020. For more information, visit invesco.com.
Invesco Canada is a shareholder of Aequitas Innovations Inc., the parent company of NEO.
Commissions, trailing commissions, management fees and expenses may all be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated. Please read the simplified prospectus before investing. Copies are available from your advisor or Invesco Canada Ltd.