Invesco Nasdaq-100 UCITS ETF GBP Hedged
| Issuer: Invesco |
| Asset Class: Equity |
| TER: 35bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 18 Oct 2017 |
| Ticker: EQGB |
| ISIN: IE00BYVTMW98 |
This investment vehicle provides targeted exposure to the 100 largest non-financial companies listed on the NASDAQ stock exchange, an index widely regarded as a benchmark for innovation and high-growth sectors. The portfolio is heavily concentrated in technology, consumer discretionary, and telecommunication services, featuring many of the world's most influential and disruptive companies. By investing in this fund, one gains access to businesses that are shaping the future of the global economy, from artificial intelligence and cloud computing to biotechnology and e-commerce. Its composition offers a distinct focus on growth-oriented firms compared to broader market indices, making it a compelling option for those seeking to capitalize on secular technology trends.
The fund is structured as a physically-replicated UCITS ETF, meaning it holds the actual shares of the companies in the index rather than using derivatives to achieve its objective. This approach provides transparency and reduces counterparty risk. As an accumulating share class, any dividends paid by the underlying companies are automatically reinvested back into the fund, allowing for the power of compounding to enhance long-term returns without creating taxable events for the investor. This structure is efficient for investors with a long-term growth-oriented investment horizon.
A key feature of this particular share class is its currency-hedging strategy. While the underlying assets are priced in US dollars, the fund hedges this exposure back to British pounds. This is particularly beneficial for UK-based investors, as it aims to neutralize the impact of fluctuations in the USD/GBP exchange rate on investment returns. Consequently, the performance an investor experiences is more directly linked to the performance of the NASDAQ-100 companies themselves, removing the additional layer of currency risk. This makes it a suitable choice for investors who want pure exposure to the growth potential of these leading US companies without speculating on foreign exchange movements.
