Invesco has launched Europe's cheapest all-world ETF, offering investors access to companies across 49 developed and emerging markets for a total expense ratio of 0.15%.
The Invesco FTSE All-World UCITS ETF will track the FTSE All-World index, providing exposure to more than 4,000 mid- and large-cap companies on a market-cap weighted basis, rebalanced on a semi-annual basis.
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The ETF will track the index using a sampling strategy that selects securities on a quantitative basis, utilising factors including country weights, industry sector weights and liquidity.
As a result, the fund will hold a smaller number of securities than are in the index, with the aim to replicating its performance without incurring the costs of investing in each security.
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Gary Buxton, head of EMEA ETFs and indexed strategies at Invesco, said: "A basic investing principle is that spreading your investment around many different securities can reduce the risk compared to investing in individual stocks.
"Taking it a step further, diversifying across different securities throughout the world can reduce risk versus investing in a single country or region.
"The idea for our new ETF is to provide every investor the opportunity for well-diversified portfolio, with one simple ETF delivering immediate exposure to the world's equity markets at a low cost."
