Invesco has cut fees on a host of STOXX Europe 600 sector ETFs as investors look to tailor their exposure amid increased market volatility this year.

Effective 7 February, 18 sector ETFs tracking financial services, commodities, utilities, travel and leisure, retail, technology and industrial goods and services will see their TER slashed from 0.30% to 0.20%.

In a market note, Invesco said it was part of its commitment to “maintaining a low total expense ratio (TER)” for its shareholders.

However, Matthew Tagliani, head of EMEA ETF product and sale strategy at Invesco, added the business was trying to capture increased inflows into sector ETFs as investors attempt to manage the current market volatility.

According to Invesco, European sector ETFs have recorded $2.2bn inflows year-to-date.

“With the increased volatility and dispersion of equity markets in 2022, investors are increasingly looking to tailor their equity exposures to more precisely align with their investment views,” he said.

“Many investors achieve this through sector ETFs as they offer a cost-effective way to quickly and precisely adjust a portfolio’s allocation.”

The ETF range includes:

  • Invesco STOXX Europe 600 Optimised Insurance UCITS ETF (XIPS)
  • Invesco STOXX Europe 600 Optimised Bank UCITS ETF (X7PS)
  • Invesco STOXX Europe 600 Optimised Health Care UCITS ETF (XDPS)
  • Invesco STOXX Europe 600 Optimised Basic Resources UCITS ETF (XPPS)
  • Invesco STOXX Europe 600 Optimised Technology UCITS ETF (X8PS)
  • Invesco STOXX Europe 600 Optimised Automobiles & Parts UCITS ETF (XAPS)
  • Invesco STOXX Europe 600 Optimised Chemicals UCITS ETF (X4PS)
  • Invesco STOXX Europe 600 Optimised Financial Services UCITS ETF (XFPS)
  • Invesco STOXX Europe 600 Optimised Food & Beverage UCITS ETF (X3PS)
  • Invesco STOXX Europe 600 Optimised Media UCITS ETF (XMPS)
  • Invesco STOXX Europe 600 Optimised Oil & Gas UCITS ETF (XEPS)
  • Invesco STOXX Europe 600 Optimised Retail UCITS ETF (XRPS)
  • Invesco STOXX Europe 600 Optimised Telecommunications UCITS ETF (XKPS)
  • Invesco STOXX Europe 600 Optimised Travel & Leisure UCITS ETF (XTPS)
  • Invesco STOXX Europe 600 Optimised Utilities UCITS ETF (X6PS)
  • Invesco STOXX Europe 600 Optimised Personal & Household Goods UCITS ETF (XQPS)
  • Invesco STOXX Europe 600 Optimised Industrial Goods & Services UCITS ETF (XNPS)
  • Invesco STOXX Europe 600 Optimised Construction & Materials UCITS ETF (XOPS)

Invesco added the cuts more closely align its European sector range to its US sector range which has a TER of 0.14%.

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