Industry Updates

Invesco adds new GICS communications sector ETF

George Geddes

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Keeping up to speed with the GICS changes, Invesco is listing a new ETF that provides exposure to the newly redefined communications sector.

The Invesco Communications S&P US Select Sector UCITS ETF (XLCP, XLCS) will track the freshly-minted S&P Select Sector Capped 20% Communication Services Index, which will make up around 10% of the S&P 500. It will charge 0.14%.

Previously known as the telecom sector, the new communication services sector index will be comprised of 26 companies including social media giants Facebook and Twitter as well as traditional entertainment companies Netflix and Disney, which have all been taken from the technology and consumer discretionary sectors.

This is one of eleven European ETFs Invesco provides which track a variety of US sectors. The company believes that the range of ETFs is useful because it gives the opportunity to adjust the exposure investors' portfolios receive, depending on the current economic conditions.

Head of EMEA ETF Equity Product Management, Chris Mellor, explains: "The new sector is significant in terms of size and economic exposure, and the greater number of stocks enables us to create a diversified, investable fund to track its performance. The new, broader Communications sector will offer higher growth potential, albeit with higher risk, and give investors the opportunity to access more cyclical companies."

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