Invesco Ltd. (NYSE: IVZ), a leading global asset manager, announced today the launch of two new exchange-traded funds (ETFs) that capture timely technology themes – biotechnology and semiconductors. The new ETFs will track the Nasdaq Biotechnology Index and the PHLX Semiconductor Sector Index. These indexes, which are maintained by Nasdaq, Inc. (Nasdaq), are the longest-standing benchmarks for each of the themes that have increased in relevance through the current events of the past year.
Through a partnership with Nasdaq, Invesco will waive advisory fees of IBBQ and SOXQ until December 17, 2021, effectively bringing the total expense ratio of each ETF to 0 basis points until December 17, 2021.
Beginning today the following new ETFs will trade on The Nasdaq Stock Market:- Invesco Nasdaq Biotechnology ETF (IBBQ)- Invesco PHLX Semiconductor ETF (SOXQ)
"We are excited to expand our relationship with Nasdaq in order to offer investors another way to access innovative companies currently shaping the way we live and work," said Anna Paglia, Global Head of ETFs & Indexed Strategies at Invesco. "There has never been a more relevant moment for these two themes, and we are happy that we could ensure investors now have the most cost-effective way to invest in Nasdaq-listed companies through indexes that have been live for almost three decades."
In the last year, the advances of technology – in which semiconductors are critical – deeply impacted the way people engaged during the pandemic. The biotechnology space has paved society's way out of the pandemic. The past year has underscored the importance of these companies, which are often well-positioned to capitalize on transformative technology themes, as these companies continue to expand their critical roles in society. Now Invesco is able to bring these strategies to market through two new ETFs that will be the most competitively priced products in their respective categories.
"Adding these two ETFs bolsters our already robust offerings in the technology sector and thematic industries within that sector," said Paglia. "Invesco continues to expand its ETF offerings to provide clients with the ability to select the exposures to help them produce the best outcomes."
The Invesco Nasdaq Biotechnology ETF (IBBQ) provides broad and significant access to over 270 innovative biotechnology companies listed on The Nasdaq Stock Market. Constituents include a high concentration of companies that were crucial to Covid vaccines and treatments, as well as to the continued growth of genomics, wellness and advanced medical therapeutics. IBBQ is modified market cap-weighted and includes large-, mid- and small-cap companies at every stage of growth. After December 17, 2021, it will have a total expense ratio of 19 basis points, making it the most cost-effective way to access the biotechnology theme.
The Invesco PHLX Semiconductor ETF (SOXQ) tracks an index that has been following the 30 largest names in semiconductor design and manufacturing for nearly 30 years, before the advent of smartphones and widespread adoption of laptops. Though the interest in semiconductors has evolved, the PHLX Semiconductor Sector Index continues to provide undiluted exposure to the semiconductor sector, through a straightforward methodology that offers a simple definition of what constitutes a company included in the theme. As recent demand for semiconductors has outpaced supply, there is potential for further growth in the space. After December 17, 2021, SOXQ will offer access to these companies at the cost-effective total expense ratio of 19 basis points, making SOXQ 16 basis points less than the next least expensive ETF in the category.
"Nasdaq is proud to be the exchange partner to a global community of healthcare and semiconductor leaders," said Lauren Dillard, Executive Vice President and Head of Investment Intelligence for Nasdaq. "Leveraging our rules-based and transparent indexes, we are pleased to build on our partnership with Invesco, bringing investment products that enable investors to gain meaningful exposure to the pioneering companies who are transforming tomorrow."
