Invesco Canada blog

Insights, commentary and investing expertise

Take the concentration out of the S&P 500 with Invesco S&P 500 Equal Weight Index ETF

March 31, 2021
Subject | ETFs | Invesco

Recent developments in the S&P 500 are an important reminder of the wisdom of the timeless adage: avoid putting all your eggs in one basket. Since its low on March 23, 2020, the S&P 500 has notched record gains1 and closed at a record high on Dec. 31, 2020,2 but a closer look reveals a more nuanced picture.


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Innovation is ongoing

June 29, 2020
Subject | ETFs

Whether markets are up or down, innovation is ongoing

Necessity is the mother of invention. Perhaps the greatest modern example occurred in 1970 when the Apollo 13 astronauts created a carbon dioxide scrubber out of socks, duct tape and a few other random parts floating about their cabin.1 But isn’t necessity a close cousin of adversity? The Dow just closed the book on its worst first quarter in 124 years2 – if adversity has the potential to generate creative thinking, can we be expecting a burst of new inventions, businesses and services in the coming months? History suggests the answer is yes.


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A dive into large-cap growth

June 3, 2020
Subject | ETFs

We are big believers in “knowing what you own” in any market environment, and amid the extreme market moves that we have seen over the past few months, it seems even more prudent. Let’s examine how the Nasdaq-100 Index differs from other well-known growth indices: the Russell 1000 Growth Index and the S&P 500 Growth Index.


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Environmental, social and governance (ESG) investing in the era of coronavirus

May 8, 2020
Subject | ETFs | Institutional

The unprecedented global response to the coronavirus pandemic has caused a sudden and severe economic slowdown. But not all companies – even within a sector – should be affected to the same degree. And part of that differentiation may be attributable to corporate policies that are recognized in environmental, social and governance (ESG) traits.


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Video: Best practices for ETF trade execution

April 20, 2020
Subject | ETFs

One of the biggest advantages of using the ETFs is the ability to transact that ETFs throughout the trading day. However, there are a couple of things to keep in mind when you are trading ETFs especially during the period of heightened volatility.


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The coronavirus impact on fixed income markets

March 16, 2020
Subject | Coronavirus impact | ETFs | Industry views

Macro impact
The spread of the coronavirus globally has continued unabated in recent weeks. The combination of “business as usual” in Europe and the U.S. and limited testing has exacerbated the issue and increased uncertainty regarding the extent of the outbreak and the ultimate path the outbreak will take. As policymakers take more aggressive measures to control the spread of the virus, we will likely see a large impact on global growth. As the extent of the outbreak has expanded, investors have had to price in a larger impact on growth over a longer period.
Invesco Fixed Income expects Q1 growth in the U.S. and Europe to be weaker than expected and Q2 growth to be significantly negative, as these economies are hit by fear and the impact of measures implemented to contain the virus. The path forward also remains very uncertain, which is a headwind for markets.
China provides a model for us to think about what lies ahead. China implemented strong measures to control the virus, which has hit the economy badly in Q1. China has now controlled the outbreak and is in the process of returning to work. Once the level of daily infection peaked, the process of returning to work started. Infections in the U.S. and Europe are still rising, and it is likely the epidemic will take a while to peak in these regions. It is the impact on growth and uncertainty around the virus propagation that is causing current market action.
It is very important to acknowledge that we believe this is a fundamentals-driven correction, which makes it very different than a financial crisis. The resolution of this situation will likely take time as we watch the epidemic play out in the U.S. and Europe. Financial conditions-driven crises, such as the one in Q4 2018 and the Global Financial Crisis can be resolved quickly by central banks. In the case of fundamentals-driven crises, central banks can only ameliorate, not solve, them. We expect this market to follow a U pattern rather than a V.
We expect risk assets to continue to be volatile, and markets will likely take a while to bottom. U.S. interest rates have been the shock absorber, but there is little room for bonds to rally further, in our view, as we do not expect the U.S. Federal Reserve (Fed) to embrace negative interest rates. The Fed will likely cut rates close to zero, but we expect the yield curve to remain positively sloped. Lower U.S. interest rates will likely erode the interest rate advantage of the dollar versus other developed market currencies, which will likely weigh on the dollar going forward versus other developed market currencies.


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What could short-term volatility mean for long-term investors?

March 14, 2020
Subject | ETFs | Macro views

Markets are continuing to be highly volatile – and the past two weeks have seen historic gains and losses. While I prefer to evaluate performance over longer periods, it’s understandable that investors are especially interested in the market’s daily fluctuations. Here’s what I’ll be watching in the coming week and months.


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Embarking on the ESG journey

March 9, 2020
Subject | ETFs | Industry views

Once considered a niche market within the investment universe, strategies that integrate environmental, social and governance (ESG) concerns into their investment process have hit the mainstream.
This has been driven by several social movements and the recognition that there is still a great deal of work to be done, particularly from a financial standpoint, to address issues ranging from climate change and gender equality to indigenous rights.
Investors who are just beginning to incorporate ESG elements in their portfolio may prefer a passive strategy for a few reasons.
First, a passive approach may offer exposure to a broad large cap segment in the market, which might make it suitable as a core portfolio holding.
Second, you get a level of transparency into which ESG elements are being incorporated alongside the other financial considerations for building the portfolio.
For an ETF, the rules are transparent and public, so the investor can evaluate the strategy before buying into it.


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The Evolution of ESG

February 27, 2020
Subject | ETFs | Industry views | Invesco

Responsible investing is becoming more mainstream as demand increases for strategies that incorporate ESG factors into their investment process. The drivers come from regulatory pressure, demographic shifts such as the growing influence of millennials, and the greater availability of corporate data on ESG issues. More generally, investors want their investments to align with their own values, especially if it offers the potential for better risk-adjusted performance.


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Challenges and opportunities within the ESG space

February 20, 2020
Subject | ETFs

As consumers, we’re more aware of the environmental and social impact of our consumption than ever before – and today, awareness has an impact on many people’s investment choices.
The growth and attention around ESG (Environmental, Social and Governance) investing within investment communities has progressed at a tremendous pace. In the U.S., ESG assets have grown 38% between 2016 and 2018,and 2019 appears to be no different. Yet as with many things that grow quickly, there can be growing pains, as well.
Today’s ESG investors face a few recurring challenges:


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Solutions: Heading into an uncertain 2019, diversification must be top-of-mind

Key takeaways

  • The road ahead is expected to be challenging due to a variety of factors: rising global interest rates, increased volatility, diverging global monetary policies, and heightened geopolitical tensions around trade and tariffs.
  • Our forecasts for returns are tepid across the major asset classes.
  • There remain pockets of opportunities within asset classes.

Heading into 2019, the market’s resiliency is likely to be tested by evolving geopolitical tensions and questions regarding the ability of a late stage economy to grow. Volatility is expected to remain elevated as the markets seek additional support for increasing asset prices beyond continued earnings growth and the perceived positive impact of tax cuts. However, the road ahead will likely be more challenging to navigate. While the economy, as measured by gross domestic product, continues to expand, and US equities are experiencing their second largest expansion in recent history, there are numerous challenges for investors to navigate going forward, including:


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Drone image, aerial image of intersection

‘Tis the season for tax-loss selling

December 5, 2018
Subject | ETFs | Invesco | Tax & Estate

As the year-end approaches, many investors with taxable accounts may be seeking to dispose of securities that have lost money. The strategy of tax-loss selling allows the investor to claim a capital loss, which offsets capital gains for the current year. Any unused net capital losses can then be applied against taxable capital gains in any of the three preceding years, or carried forward indefinitely to future years. To realize capital gains and losses in 2018, trades must be executed by Thursday, December 27 to ensure settlement by Monday, December 31, the last business day of 2018.


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During market drops, the Low Volatility factor has outperformed

November 23, 2018
Subject | ETFs | Invesco

In 2017, the S&P 500 Index did not experience any corrections greater than 5%. So far in 2018, there have been three such market drops. So which year represents the more typical investor experience? History shows us that the relative calm of 2017 was an outlier, and that losses and volatility are recurring events that investors should be prepared for.


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