Industry Updates

Invesco closes two ETFs

Tom Eckett

a chain link fence

Invesco has shut two ETFs following continued low levels of demand,

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can reveal.

The Invesco S&P 500 VEQTOR UCITS ETF (SPVX) and the Invesco Dynamic US Market UCITS ETF (PSWC) had just $1.4m and $3.8m assets under management (AUM) at the time of closure, respectively.

Invesco said in a statement: “These funds are being closed as it is no longer economically viable to operate them.

“The review of funds with continued low levels of demand is standard practice as part of our product development process.”

Launched in June 2015, SPVX tracked the S&P 500 Dynamic VEQTOR index which dynamically allocated between the S&P 500, the S&P VIX Short-Term Futures index and cash.

If losses in the index were greater than 2% over the previous five trading days, SPVX would move its entire allocation to cash or cash equivalents.

PSWC was launched in November 2007 and the tracked the Dynamic Market Intellidex (SM) index which selects companies based on five factors; price momentum, earnings momentum, quality, management action and value.

The closures come just two months after Invesco halted trading on two exporter ETFs, the Invesco STOXX Japan Exporters UCITS ETF (JPEX) and the Invesco STOXX Eurozone Exporters UCITS ETF (EZXU) which had $2.5m and $15.7m AUM.

In what has been described as “an ordinary part of the business” by DWS, ETF closures in Europe are on the rise. According to data from Morningstar there were 152 closures in 2018 compared to just 108 in 2014.

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