Invesco has launched Europe’s first ETF providing equal weight exposure to the popular MSCI World index.
The Invesco MSCI World Equal Weight UCITS ETF (MWEQ) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.20%.
MWEQ physically replicates the MSCI World Equal Weight index of more than 1,400 large and mid-cap equities across 24 developed markets.
The launch coincides with the top 10 holdings of the parent MSCI World index comprising more than 25% of its weight, representing the highest concentration in more than four decades.
It also comes after global equity ETFs booked $35bn inflows across all markets so far in 2024.
Gary Buxton (pictured), head of EMEA and APAC ETFs and indexed strategies at Invesco, commented: “The sharp equity market sell-off in July – while relatively short-lived – provided a timely reminder of just how quickly individual company fortunes and investor sentiment can change.
“Our new ETF offers investors a sensible way to maintain broad exposure to global equity markets, but with reduced sensitivity to the performance of any individual company.”
Chris Mellor, head of EMEA equity ETF product management at Invesco, added MWEQ enables investors to spread risk not just at the stock level but also at a sector and geographic level.
“You end up with an allocation of around 42% to the US compared to over 70% in the standard index, and that allows you to capture increased exposure to Japan, the UK and other developed markets,” Mellor added.
MWEQ’s arrival marks Invesco’s third equal-weight UCITS ETF offering after it launched the Invesco Nasdaq-100 Equal Weight UCITS ETF (IEWQ) last July and the Invesco S&P 500 Equal Weight UCITS ETF (SPED) in April 2021.
It also follows the launch of the Xtrackers MSCI World ex USA UCITS ETF (EXUS) in March this year.
