Invesco has closed a global commodity ETF and high yield corporate bond ETF after both products failed to garner traction with European investors.
The Invesco Commodity Composite UCITS ETF (LGCU) has gathered just $26.7m in assets under management (AUM) since launching in 2011.
Meanwhile, the Invesco USD High Yield Corporate Bond ESG UCITS ETF (GBHG) has just $10m since its inception in 2021.
LGCU will officially stop trading on 18 November, while GBHG will stop trading on 4 November.
In both shareholder notices, Invesco said: “The decision of the board to terminate the fund is based on the advice of the promoter and investment manager that the continued existence and operation of the fund is not economically viable.”
Commenting on GBHG, Paul Syms, head of EMEA ETF fixed income and commodity product management told ETF Stream: “The Invesco USD High Yield Corporate Bond ESG UCITS ETF was launched in July 2021 but, with only $10m AUM, it’s a sub-scale fund that has failed to gain traction with our client base.
“Following the annual product review, it was decided that it should be closed due to its low AUM and lack of immediate pipeline.”
LGCU tracks the Solactive Commodity Composite index capturing global commodity market, with the highest weightings to oil (15%), gold (14.8%) and soybean (7.3%).
GBHG tracks the Bloomberg MSCI USD high yield liquid corporate ESG weighted SRI bond index which offers exposure to US dollar denominated high yield, fixed-rate securities issued by corporate issuers with an ESG screen.
Invesco also shut its EMU ESG-screened ETF in July after failing to gather significant assets since launching in 2021.
