Alternative Investments/ESG: Invesco Launches ESG-Focused Global Sector ETFs

The new Invesco ETFS span the energy, financials, health care, and information technology sectors.

Global asset management firm Invesco has introduced a series of global sector exchange-traded funds (ETFs) that aim to enhance their environmental, social, and corporate governance (ESG) profiles, as well as reduce carbon emissions. The four ETFs, named Invesco S&P World Sector ESG UCITS ETFs, will track the performance of the S&P Developed Ex-Korea LargeMidCap ESG Enhanced Sector Indices, created by S&P Dow Jones Indices for sustainable sector investing. The ETFs fall under Article 8 of the EU’s Sustainable Financial Disclosure Regulation, indicating their ESG focus. (Wealth Briefing)

The four Invesco sector ETFs cover energy, financials, health care, and information technology sectors. The ETFs exclude securities involved in tobacco, controversial weapons, oil sands, small arms, military contracting, or thermal coal, based on UN Global Compact principles. They also exclude securities with low ESG scores or high carbon intensity levels. Invesco aims to enhance the ESG profiles of these sector indices by integrating sustainability considerations into the investment process, going beyond exclusions.

Gary Buxton, head of EMEA ETFs and indexed strategies at Invesco, noted that investors are increasingly seeking more targeted ESG exposures, such as sectors, and are demanding robust and thoughtful ESG integration processes.

Invesco’s new ETFs are part of the firm’s larger range of sector products, which includes 30 US and European sector ETFs with over $2.3 billion in assets under management. The new launches also add to Invesco’s range of ESG ETFs, which currently manage over $5.2 billion in assets across equity and fixed income exposures.

S&P Dow Jones Indices, which created the benchmark for the ETFs, emphasized the relevance of sector investing and the potential impact of sectors on stock performance. The new ETFs seek to provide diversified exposure to sectors while incorporating ESG considerations and reducing carbon emissions.

Related Story:  Invesco Launches ETFs For Exposure To Wind Energy And Hydrogen

Image by Clker-Free-Vector-Images from Pixabay

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