Invesco ETFs

As one of the biggest ETF providers in the world, Invesco ETFs can be found and traded on many share dealing platforms in the UK. Here, we’ve outlined the key things you need to know about Invesco ETFs, including the different types, whether they’re safe to invest in, and which Invesco ETFs are the best-performing.

What is Invesco?

Invesco is a multinational investment management firm based in Atlanta in the US, with offices around the world employing more than 8,000 people between them. Invesco’s product range includes exchange-traded funds (ETFs), mutual funds, unit investment trusts, and collective trusts.

Invesco’s been involved in ETF investing since 2003, and is one of the largest global ETF providers. It has more than US$396 billion globally in ETF assets under management.

It offers its services to both individual retail investors and institutional investors. In the UK, alongside its ETFs, retail investors can also access ICVC funds, investment trusts and offshore funds.

Best-performing Invesco ETFs

We’ve used the table below to showcases a selection of the best-performing Invesco ETFs historically. As always bear in mind that past performance isn’t necessarily an indicator of future results. Even the best performers can take a dip, and vice versa.

Icon	ETF	5-year performance	YTD performance (to 2 July 2024)	Link to invest
	Invesco US Technology Sector UCITS ETF (XLKQ)	234.45%	33.06%	Invest with HLCapital at risk
	Invesco EQQQ Nasdaq-100 UCITS ETF (EQQQ)	162.45%	19.41%	Invest with XTBCapital at risk
	Invesco NASDAQ 100 UCITS ETF GBP Hedged (EQGB)	140.44%	16.75%	Capital at risk
	Invesco JPX-Nikkei 400 USD Hedged UCITS ETF (N4US)	125.89%	25.24%	Invest with Hargreaves LansdownCapital at risk
	Invesco CoinShares Global Blockchain UCITS ETF Acc (BCHS)	119.83%	10.13%	Invest with InvestEngineCapital at risk

Types of ETFs Invesco offers

Invesco offers UK investors a choice of 189 equity, fixed-income or commodity ETFs. The firm breaks its ETFs down into different, overlapping categories to help investors choose. For example, by investment focus, and by investment strategy:

Investment focus categories

• Broad commodity ETFs
• Cash management ETFs
• Corporate bond ETFs
• Government bond ETFs
• High-yield bond ETFs
• Large cap ETFs
• Mid cap ETFs
• Precious metal ETFs
• Small cap ETFs

Investment strategy categories

• Core ETFs: foundational building blocks to a portfolio that usually track a popular index
• ESG ETFs: assets are selected around how well they meet environmental, social and governance benchmarks
• Sector ETFs: investments in the ETF are based around a particular industry or sector
• Smart beta ETFs: use a rules-based system for selecting investments to be included in a fund portfolio
• Innovative income ETFs: ETFs that aim to deliver income in more innovative ways
• Thematic ETFs: typically invest in a collection of assets that meet a certain theme, such as “fintech” or “big data”

You can also select Invesco ETFs by market (developed or emerging) or region, for example.

How to invest in Invesco ETFs

To invest in an Invesco ETF, you’ll need to sign up to a broker or share dealing platform that has access to the Invesco products you’re interested in. Here’s how UK investors can get started.

1. Research Invesco ETFs. There are nearly 200 Invesco ETFs to choose from, so take time to choose the right options to align with your investment strategy and met your goals.
2. Sign up to a platform. The next step is to select the right share dealing platform. Look out for things like fees, the tools and information it offers, plus, of course, make sure that it gives access to the Invesco ETFs (and any other assets) that you want to invest in. Not all Invesco ETFs are available on all platforms.
3. Add money to your account. You’ll need to make sure you have enough funds available to make your chosen investments and pay any fees.
4. Buy the Invesco ETF(s). Select your chosen ETF and click buy.

A key benefit of ETFs over buying individual assets is that you get exposure to a portfolio of investments in one transaction. This spreads your risk, and could save you money in transaction fees too.

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Are Invesco ETFs a good investment?

There are actually two parts to this question: are ETFs a good investment, and are Invesco ETFs specifically a good investment?

ETFs can form a good foundation for a portfolio, especially for beginners. They tend to be pretty cheap in terms of fees, because there are fewer costs associated selecting a ready-made basket of assets than choosing and buying each asset individually, or opting for an actively-managed fund that involves more effort on the part of the fund manager. Plus, ETFs give investors easy access to a broad (or diverse) range of assets in one fell swoop, which means instant diversification and spreading of risk.

As to whether Invesco ETFs are a good investment, well it depends on your investment strategy and the specific Invesco ETF you buy. The performance of each exchange-traded fund can vary dramatically; each will have different aims and track various investments. So, as always, careful research and analysis is required and – if necessary – consultation with a professional financial adviser. That said, Invesco is one of the world’s biggest ETF providers, so it certainly doesn’t hurt to check out what it has to offer.

Are Invesco ETFs safe?

Invesco Asset Management Limited is authorised and regulated by the Financial Conduct Authority. This means that Invesco investments, including ETFs, are as safe as those with any other regulated firm.

If you have a reason to complain after investing with a regulated firm and it is unable to resolve it to your satisfaction, you may be able to escalate your complaint to the Financial Ombudsman Service. Invesco is also covered by Financial Services Compensation Scheme (FSCS). This means that up to £120,000 of your investments may be protected in the event that Invesco goes into administration.

However, bear in mind this won’t cover your investment choices losing value due to underperformance, and nor is regulation a guarantee that an investment won’t underperform. Investing is risky by its very nature; it’s the trade-off for the potential of higher returns.

Bottom line

As one of the world’s biggest ETF providers (many sources put it in position 4, behind BlackRock Financial Management/iShares, Vanguard and State Street), if you’re looking to invest in ETFs then Invesco’s are worth a look. With nearly 200 ETFs in its product suite, there will be plenty to choose from for most investors. This includes anything from ETFs that track major indices such as the FTSE 100 or Nasdaq, to those aimed at people interested in ESG values.

Whether you decide to opt for an Invesco ETF or an ETF from one of its rivals, such as iShares or Vanguard, take time to select the right ETF for your investment strategy and risk appetite. If in doubt, seek professional financial advice.

Frequently asked questions

• Are Invesco ETFs good for beginners?

  Potentially, depending on the ETF you choose. ETFs are often a less risky bet than investing directly in shares, for example, because they automatically invest your money in multiple assets and diversify your portfolio by default. Beginners may be best to start out looking at Invesco ETFs that fall within the “Core” strategy category. These will tend to give broad exposure to mainstream assets, and will often track a stock index. Major index-based ETFs are often regarded as lower-risk than more niche options, such as those that hone in on a specific sector.

• Can you lose money investing in Invesco ETFs?

  Yes. As with any ETF – and indeed any investment – returns are not guaranteed. Investing in a fund, such as an ETF, simply aids diversification, and reduces volatility and risk, compared to some other types of investment. It doesn’t eliminate that risk entirely.

• Does Invesco ETFs pay dividends?

  Some do and some don’t. It will detail this in the Key Information Document (KID) for each fund, so read it carefully to make sure you choose the ETF that suits your goals. Another good indicator is whether the name of the ETF is followed by “Acc” (accumulation) or “Dist” (distribution). With accumulation ETFs, dividends are rolled back into the fund so that it grows in value; no dividends will be paid out. With distribution ETFs, dividends will be paid into your account as cash.

  If you want to invest in dividend ETFs, check out our guide on how to do that and which ones have performed best.

• Does Invesco offer any ethical ETFs?

  Invesco offers a number of ETFs that it categorises as “ESG” ETFs. Environmental, social and governance (ESG) investing is where you invest in a more socially-conscious and ethical manner, while still aiming to make good financial returns. The assets included in ESG ETFs will almost certainly have been chosen based on them having higher than average ESG scores. Investments with higher ESG scores typically have a less negative (and sometimes a positive) impact on our world than those with lower scores. ESG-based ETFs don’t guarantee that every asset included is whiter than white, but are a good starting point for those looking to invest more ethically.

• How many ETFs does Invesco have?

  Invesco has more than 180 ETFs available to individual investors in the UK.

• Can you buy ETFs directly from Invesco?

  No. Invesco ETFs will be listed on a stock exchange, such as the London Stock Exchange. You typically buy and sell them through a stockbroker or share dealing platform, just like you would do with stocks and shares.

Written by

Ceri Stanaway

Writer

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Ceri Stanaway is a researcher, writer and editor with more than 15 years’ experience, including a long stint at independent publisher Which?. She’s helped people find the best products and services, and avoid the pitfalls, across topics ranging from broadband to insurance. Outside of work, you can often find her sampling the fares in local cafes. See full bio