Invesco has expanded its active ETF range with a global equity strategy that uses value, quality and momentum signals to try to outperform the broader market.
The Invesco All Country World Enhanced Equity UCITS ETF has launched on the London Stock Exchange, giving investors access to an actively managed portfolio of large and mid-cap companies across both developed and emerging markets, through an “index plus” product.
The ETF, which has a total expense ratio of 0.24%, uses a proprietary quantitative model to select and weight stocks rather than tracking an index. The model assesses companies on three main factors – value, quality and momentum – with securities compared against other companies in their respective sectors.
Portfolio construction also takes overall risk and trading costs into account, with the analysis and optimisation process updated monthly. The MSCI ACWI is used as a reference point for the strategy, with the fund aiming to deliver higher long-term risk-adjusted returns rather than replicate the index.
The ETF began trading on the London Stock Exchange on 21 August 2026, with USD ticker IQAW, and has also been listed on Xetra. Its launch extends Invesco’s existing Enhanced Equity range, which includes strategies covering developed global equities as well as individual regions and emerging markets.
The launch comes as competition in broad global equity ETFs continues to intensify. Vanguard last week launched its FTSE Global All-Cap UCITS ETF, offering passive exposure to more than 7,000 large, mid and small-cap companies across developed and emerging markets for a fee of just 0.07%.
Our view
David Batchelor, senior analyst at QuotedData, said: “The interesting aspect of this launch is less the factors themselves – value, quality and momentum are all well established – and more the way the distinction between active and passive ETFs continues to blur. Invesco is making active decisions about which companies to own and how much to allocate to them, but those decisions are generated systematically rather than through the traditional model of a fund manager researching companies and making discretionary stock picks.
That also makes the fee comparison interesting. Investors can now obtain extremely broad global market exposure for as little as 0.07%, while Invesco is asking 0.24% for its model to tilt that exposure towards characteristics it believes can improve returns. That is still inexpensive compared with many traditional actively managed funds, but the strategy ultimately has to demonstrate that its factor tilts can add enough value after costs. There will inevitably be periods when value, quality or momentum fall out of favour, and combining several factors does not eliminate that risk. Nevertheless, the launch is another indication that active ETF providers increasingly see systematic strategies as a way of competing directly with the cheap global trackers that have attracted so much investor money”.
