Industry Updates

Invesco to close four ETFs no longer ‘economically viable’

Small, mid-cap and value ETFs set to close

Theo Andrew

a sign from a string

Invesco is set to shut four ETFs including a $27m global equity factor ETF with the products no longer seen as “economically viable” to run.

In addition to the Invesco Goldman Sachs Equity Factor Index World UCITS ETF (EFIW), the asset manager said it would be closing its European small-cap, European mid-cap and European value ETFs, effective 10 May.

In a shareholder notice, Invesco said: “We are writing to inform you that the board of directors has, with regret, determined that it is in the best interests of the shareholders to terminate the ETFs.

“The decision of the board to terminate the ETFs is based on the advice of the promoter and investment manager that the continued existence and operation of the fund is not economically viable.”

ETFs set to close:

  • €8.3m Invesco STOXX Europe Small 200 UCITS ETF (SCXR)

  • €5.8m Invesco STOXX Europe Mid 200 UCITS ETF (MCXR)

  • €9.5m Invesco MSCI Europe Value UCITS ETF (EMSV)

  • €24.9m Invesco Goldman Sachs Equity Factor Index World UCITS ETF (EFIW)

Matt Tagliani, EMEA ETF head of product and sales strategy at Invesco, said: "Invesco regularly reviews our EMEA ETF product range to ensure products continue to deliver efficient solutions to genuine client needs. 

"These funds were identified for rationalisation as part of the 2022 annual product review due to persistently low AUM, lack of client engagement on the strategies and the absence of any clear catalyst that would likely drive increased demand in the future."

Invesco added the total AUM across the funds represents approximately 0.1% of the AUM in our EMEA-domiciled exchange-traded products (ETP) range as of 27 March.

It comes as several major ETF issuers close European equity ETFs in recent days on persistently low demand.

Amundi announced it would be shutting three European equity ETFs including the Amundi iStoxx Europe Multi-Factor Market Neutral UCITS ETF (MKTN) due to low assets under management (AUM).

DWS also said it would be closing its credit default swap (CDS) ETF despite gathering over €75m AUM.

The Xtrackers iTraxx Crossover Short Daily Swap UCITS ETF (XTC5) will close on 25 April. It comes after CDSs were shunted into the spotlight last week, leading to a sharp drop in Deutsche Bank’s share price as contagion fears spread across the European banking sector.

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