Invesco has unveiled a new suite of ESG ETFs designed to help achieve climate goals set out in the Paris Agreement on climate change.
The ETFs will track MSCI indices that exclude assets deemed to damage efforts to meet the 1.5°C global warming target and aims to target asset helping the transition to the a lower carbon world.
The new Invesco ESG ETFs will offer exposure of equity markets in USA, Europe, Japan and World equity market. An emerging markets ESG ETF is said to be in the pipeline for release in the coming weeks.
With the addition of the four new products, Invesco now has an offering of 21 ESG ETFs.
|Base/trading currency||Ongoing charge (p.a.)|
|Invesco MSCI World ESG Climate Paris Aligned UCITS ETF||PAWD||USD/USD||0.19%|
|Invesco MSCI USA ESG Climate Paris Aligned UCITS ETF||PAUS||USD/USD||0.09%|
|Invesco MSCI Europe ESG Climate Paris Aligned UCITS ETF||PAES||EUR/GBP||0.16%|
|Invesco MSCI Japan ESG Climate Paris Aligned UCITS ETF||PAJP||USD/USD||0.19%|
“As world leaders initiate plans to slow global warming, companies are key to success. They will need to reduce their carbon footprints while many will also create products and services to help us all improve ours,” said Gary Buxton, Head of EMEA ETFs and Indexed Strategies at Invesco.
“This new range of ETFs offer investors an efficient way to focus on companies with lower climate-related risks and positive exposure to the transition, while meeting broader ESG objectives.”
“The Invesco ETFs will follow MSCI indices that aim to reduce exposure to transition and physical climate risks whilst pursuing opportunities arising from the transition to a lower carbon economy while aligning with the Paris Agreement requirements. Each index applies a broad set of exclusions, with the remaining constituents optimised to reduce carbon intensity to a level consistent with a 1.5°C warming pathway, as well as reducing the weighting of companies exposed to climate transition risks, maximising the weighting of companies with the highest exposure to climate transition opportunities and minimising tracking error relative to the standard MSCI index.”
The launch of Invesco’s ESG ETFs will add to a burgeoning marketplace that has seen a raft of new products in the past few years from providers such as iShares and Lyxor.