Invesco Global Enhanced Equity UCITS ETF

Issuer: Invesco

Asset Class: Equity

TER: 25bps

Trading Currency: GBX

Pays Income: False

Listing Date: 22 May 2025

Ticker: IQGX

ISIN: IE000TZ4SIN6

This actively managed fund is designed to deliver long-term capital growth by investing in a diversified portfolio of global equities. The core of its strategy is a systematic, quantitative process that deviates from traditional market-cap-weighted approaches. Instead, it aims to outperform the broader market by applying a proprietary model that focuses on two academically validated factors: value and momentum. This 'enhanced' equity strategy involves selecting stocks that are deemed attractively priced relative to their fundamentals, while also demonstrating positive price trends. The portfolio is globally diversified across various countries and sectors, providing broad exposure to the world's equity markets within a single, rules-based framework.

The investment process is driven by the proprietary Invesco Equity Value-Momentum (V-Mo) model. This sophisticated tool systematically screens a wide universe of global stocks to identify companies that exhibit strong characteristics for both factors simultaneously. The 'value' component seeks out companies trading at a discount, while the 'momentum' component identifies stocks with strong recent performance that is expected to continue. By combining these two distinct factors, the strategy aims to capture the benefits of both, mitigating the risk of investing in 'value traps' (stocks that are cheap for a reason) and capitalizing on established market trends. This disciplined, bottom-up approach results in a carefully constructed portfolio of companies selected for their potential to generate strong risk-adjusted returns.

This product may be suitable for investors seeking a core global equity allocation with the potential for alpha generation over purely passive index-tracking funds. It offers a solution for those who believe in the long-term efficacy of factor investing but prefer the convenience of an actively managed, pre-packaged strategy. By moving beyond market capitalization and systematically targeting companies with specific value and momentum traits, the fund attempts to enhance returns and manage portfolio risk. Its comprehensive global exposure makes it a convenient tool for achieving diversification across both developed and emerging markets through a single investment.