Invesco Launches Blockchain ETF

Invesco is launching an new ETF designed to target companies with potential to generate real earnings from blockchain technology.

The Invesco Elwood Global Blockchain UCITS ETF has been developed in partnership with Elwood Asset Management (“Elwood”), an investment firm specialising in providing institutional investors with exposure to digital assets and blockchain technology.

A blockchain is a ledger that enables the transfer of assets to create a transparent, unalterable, traceable and permanent record of all transactions involving those particular assets.

Cryptocurrencies were the first assets to use the blockchain technology, but assets can also be physical, or they could be medical records, legal contracts or any other information that flows between multiple parties.

Chris Mellor

Chris Mellor

Chris Mellor, Head of EMEA ETF Equity Product Management at Invesco, said,

“The potential for blockchain to drive real earnings is huge, but it is often hidden within companies involved in other areas. This ETF offers investors access to companies with real earnings now, but with the added potential of blockchain-related earnings not reflected in their share prices.”

The ETF aims to deliver the performance of the Elwood Blockchain Global Equity Index by physically investing in the index constituents. The index offers exposure to global companies in developed and emerging markets that participate or have the potential to participate in the blockchain ecosystem. It is designed to evolve with the
potential growth of blockchain technology.

Kevin Beardsley, Head of Business Development at Elwood, commented,

In terms of the largest sector allocations, the index currently has 46% in information technology, 23% in financials, 9% in communication services and 8% in both the materials and consumer discretionary sectors. The three largest geographical allocations are to the US (39%), Japan (29%) and Taiwan (12%).

The index is calculated for Elwood Asset Management by Solactive AG, a globally recognised index provider with expertise in tailor-made indices. The index is reviewed and rebalanced quarterly.

ETFInvesco Elwood Global
Blockchain UCITS ETF
Bloomberg codeBCHN
ExchangeLSE
Reference indexElwood Blockchain Global Equity Index
Base / trading currencyUSD / USD and GBP
Ongoing charge (per annum)0.65%

 

Invesco launched also the first ETFs in Europe that provided targeted exposure to the fintech and biotechnology sectors.

 

Featured image credit: Unsplash

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