Alternative Investments/ESG: Invesco Launches ESG ETF For The Canadian TSX Index

The ETF will offer exposure to Canadian large-cap equities.

Invesco’s new ETF launch will trade on the Toronto Stock Exchange and allow investors to invest in Canadian large-cap equities that have been screened for ethical concerns.

The Invesco S&P/TSX Composite ESG Index ETF is the first Canadian-listed ETF to track the S&P/TSX Composite ESG Index. The latter is derived from the benchmark S&P/TSX Composite Index – the headline index for the Canadian equity market – after applying the S&P DJI’s Environmental, Social, and Governance criteria to select companies. (ETF Strategy)

Invesco S&P/TSX Composite ESG Index ETF

After screening, the 223 names in the large-cap headline TSX index reduce to just 95 companies in its ESG version.

The methodology aims to filter out the most controversial companies and provide an ESG tilt. However, it still maintains a risk/return profile similar to the broad Canadian equity market.

It excludes companies involved in tobacco, controversial weapons, thermal coal, and those with a low UNGC score.  It also weeds out companies falling within the worst 25% of ESG scores for each global GICS industry group.

According to Invesco, this process makes the ETF suitable as a core holding in socially responsible investors’ portfolios.

The ETF may also prove attractive to investors because of its low fees of only 0.15%. Hence it claims to be among the most competitively priced Canadian-focused ESG ETFs in Canada.

According to Invesco:

  • There is US$ 12 trillion in U.S. assets under management that are ESG-favourable.
  • 54% of millennials prefer to invest in companies that have a positive social or environmental impact.
  • 96% of advisors think that high-net-worth investors will demand ESG strategies in their portfolios.

Invesco is a veteran in the ESG space

Jason McKay, Head of Wealth Management Intermediaries, Invesco Canada, commented, “Invesco has one of the longest track records in the ESG space, having launched cleantech ETFs in 2005. The newest launch of the Invesco S&P/TSX Composite ESG Index ETF will further expand our global ESG product suite with a Canadian focus, offering investors an ESG overlay on a key benchmark of the Canadian equity market.”

Reid Steadman, Managing Director and Global Head of ESG Indices at S&P Dow Jones Indices, added, “In the last year, ESG has joined the mainstream of investing as market participants increasingly see the importance and relevance of indices that incorporate sustainability data and principles and allow them to achieve their ESG investment goals while attaining performance largely in line with the market. We’re excited to partner with Invesco on the launch of the first ETF product in Canada based on the S&P/TSX Composite ESG Index.”

Related Story:    Insurers Take a Fancy To ESG & Sustainability ETFs (Invesco)

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Alternative Investments/Digital: The Wave BTC Income & Growth Fund Clocks 146% Return
January 27, 2021     Alternative Investments, Digital Assets, News

The numbers are out for the Wave BTC Income & Growth Digital Fund’s first full year of trading, and they’re impressive. The fund scored a 145.8% annual gain for its…
FinTech: Infinity Maritime Names Four Shipbrokers For Its Alternative Ship Finance Platform

Infinity Maritime aims to provide a sustainable solution for maritime finance by digitizing ship portfolios on its platform. This enables fractional ownership, secondary trading in ships, and the financing of…
Digital Assets: Central Bank Of Bahrain Licenses Shariah Compliant Crypto Exchange CoinMENA
January 27, 2021     Digital Assets, ESG and Sustainability, News

Investors in select Gulf countries, looking to invest in the burgeoning world of cryptocurrencies, may soon get that opportunity. CoinMENA, a digital assets exchange certified as Shariah-compliant by the Shariyah…
Venture Capital: Travel and Experiences Operator Klook Notches $200M
January 27, 2021     News, Venture Capital

Hong Kong-based, SoftBank-backed Klook, an online travel agency focused on experiences and attractions, has raised $200 million in a Series E round. Led by Aspex Management, the round also featured…