Invesco lists five new ETFs on LSE

The Invesco MSCI Europe ESG Climate Paris Aligned UCITS ETF aims to provide the net total return performance of the MSCI Europe ESG Climate Paris Aligned Benchmark Select Index, less the impact of fees.

The Reference Index tracks the performance of large and mid-capitalisation companies in developed European countries and aims 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. The Reference Index also provides exposure to companies with high ESG metrics and incorporates the TCFD (Task Force on Climate Related Financial Disclosures) recommendations and is designed to exceed the minimum standards of the EU Paris-Aligned Benchmark as set out in the Commission Delegated Regulation (EU) 2020/1818.

The Reference Index is constructed from the MSCI Europe Index by applying the index provider’s exclusionary criteria. The remaining constituents are then subject to an optimisation, which has the aim of aligning the Reference Index to the objectives of the Paris Agreement by 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 the ex-ante tracking error relative to the Parent Index. The remaining constituents are also subject to a set of diversification and turnover constraints.

The fund aims to achieve its objective by buying and holding, as far as possible and practical, all the securities in the Reference Index in their respective weightings. The fund will aim to rebalance its holdings in line with the Reference Index’s semi-annual rebalancing schedule.

The Invesco MSCI Japan ESG Climate Paris Aligned UCITS ETF aims to provide the net total return performance of the MSCI Japan ESG Climate Paris Aligned Benchmark Select Index, less the impact of fees.

The Reference Index tracks the performance of large and mid-capitalisation companies in Japan and aims 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. The Reference Index also provides exposure to companies with high ESG metrics and incorporates the TCFD (Task Force on Climate Related Financial Disclosures) recommendations and is designed to exceed the minimum standards of the EU Paris-Aligned Benchmark as set out in the Commission Delegated Regulation (EU) 2020/1818.

The Reference Index is constructed from the MSCI Japan Index by applying the index provider’s exclusionary criteria. The remaining constituents are then subject to an optimisation, which has the aim of aligning the Reference Index to the objectives of the Paris Agreement by 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 the ex-ante tracking error relative to the Parent Index. The remaining constituents are also subject to a set of diversification and turnover constraints.

The fund aims to achieve its objective by buying and holding, as far as possible and practical, all the securities in the Reference Index in their respective weightings. The fund will aim to rebalance its holdings in line with the Reference Index’s semi-annual rebalancing schedule.

The Invesco MSCI USA ESG Climate Paris Aligned UCITS ETF aims to provide the net total return performance of the MSCI USA ESG Climate Paris Aligned Benchmark Select Index , less the impact of fees.

The Reference Index tracks the performance of large and mid-capitalisation companies in the US and aims 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. The Reference Index also provides exposure to companies with high ESG metrics and incorporates the TCFD (Task Force on Climate Related Financial Disclosures) recommendations and is designed to exceed the minimum standards of the EU Paris-Aligned Benchmark as set out in the Commission Delegated Regulation (EU) 2020/1818.

The Reference Index is constructed from the MSCI USA Index by applying the index provider’s exclusionary criteria. The remaining constituents are then subject to an optimisation, which has the aim of aligning the Reference Index to the objectives of the Paris Agreement by 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 the ex-ante tracking error relative to the Parent Index. The remaining constituents are also subject to a set of diversification and turnover constraints.

The fund aims to achieve its objective by buying and holding, as far as possible and practical, all the securities in the Reference Index in their respective weightings. The fund will aim to rebalance its holdings in line with the Reference Index’s semi-annual rebalancing schedule.