Invesco has launched an exchange traded fund (ETF) offering exposure to the newly-created communications sector of the S&P 500, including names such as Netflix, Google and Facebook.
The ETF will be listed on the London Stock Exchange and is the 11th in the Invesco S&P Select Sector Ucits ETF range.
Invesco claims the ETF offers investors the lowest cost US exposure in Europe at 0.14% per annum.
The launch is to capitalise on the fact that S&P and MSCI are changing their global industry classification standards (Gics) to better reflect how the growth of digital technology has changed communication. Companies are being reclassified from segments of the technology and consumer discretionary sectors.
The 26 stocks in the new sector will include household names such as Twitter, Alphabet, Facebook, Netflix and Disney. Communications will make up around 10% of the S&P 500, making it one of the largest sectors in the index.
Chris Mellor, head of EMEA ETF equity product management at Invesco, said: “Communication has changed dramatically in recent years, with digital technology providing easy and instant access for just about anything you want. For example, people now get their news from online feeds and watch on-demand movies on their mobile devices, whenever and wherever they choose. Companies that provide these services are benefiting from huge demand from a truly global customer base.”