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Toronto-based Invesco Canada Ltd. has launched an equal-weight European large-cap ETF, the company announced Thursday.

Invesco S&P Europe 350 Equal Weight Index ETF (EQE) tracks the S&P Europe 350 Equal Weight index, which weights each company equally at each quarterly rebalancing.

The new fund launches today on the NEO Exchange, in hedged and unhedged versions.

“Investors seeking low-cost exposure to European equities through a cap-weighted index may inadvertently take on substantial concentration risk,” Jasmit Bhandal, head of ETF product strategy and development, says in a statement. “The top 50 stocks in the S&P Europe 350 account for 49% of the index weight as compared to the equal weight version in which the top 50 stocks are only 16% of the index weight.”

“The equal-weight strategy of EQE can help mitigate that risk, and provide greater diversification potential,” Bhandal says.

The introduction of EQE expands Invesco’s equal-weight offering, as it follows the Invesco S&P 500 Equal Weight Index ETF (EQL: TSX), which began trading May 29.