Invesco lists three new ETFs on LSE

Invesco has launched three new Exchange Traded Funds (ETFs) to the LSE (London Stock Exchange)

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By ETFWorld.co.uk

Invesco Global High Yield Corporate Bond ESG UCITS ETF Dist

The Invesco Global High Yield Corporate Bond ESG UCITS ETF Dist aims to provide the total return performance of the Bloomberg MSCI Global High Yield Liquid Corporate ESG Weighted SRI Bond Index, less the impact of fees.

The Reference Index is designed to reflect the performance of global high yield, fixed-rate debt securities issued by corporate issuers across developed and emerging markets, adjusted based upon certain environmental, social and governance (“ESG”) metrics, which seek to increase overall exposure to those issuers demonstrating a robust ESG profile. The Reference Index includes publicly issued securities by industrial, utility and financial institution issuers in global and regional markets, with principal and interest denominated in USD, EUR or GBP.

Securities are excluded that according to the index provider’s exclusionary criteria: 1) have an MSCI ESG rating below BB; 2) are issued by an issuer that does not have an MSCI ESG rating; 3) have faced very severe controversies pertaining to ESG issues (including UN Global Compact violations) over the last three years; 4) are issued by an issuer that does not have an MSCI ESG Controversy Score; or 5) are involved in alcohol, adult entertainment, controversial weapons, conventional weapons, genetically modified organisms, civilian firearms, nuclear weapons, nuclear power, oil sands, thermal coal, tobacco or unconventional oil and gas

Each of the eligible component securities is then assigned an ESG score using MSCI ESG metrics. This ESG Score is then applied to re-weight the eligible securities from their natural weights as a result of the notional size of the bond, to construct the weighting of the Reference Index. Issuers are capped at 5% of the market value of the Reference Index. The Reference Index rebalances monthly.

Invesco Global High Yield Corporate Bond ESG UCITS ETF GBP PfHdg Dist

The Invesco Global High Yield Corporate Bond ESG UCITS ETF GBP PfHdg Dist aims to provide the total return performance of the Bloomberg MSCI Global High Yield Liquid Corporate ESG Weighted SRI Bond Index, less the impact of fees. The fund distributes income on a quarterly basis.

To minimise exposure to fluctuations in the exchange rate between the GBP and the base currencies of the fund’s underlying holdings, the GBP portfolio-hedged share class enters into foreign exchange transactions.

The Reference Index is designed to reflect the performance of global high yield, fixed-rate debt securities issued by corporate issuers across developed and emerging markets, adjusted based upon certain environmental, social and governance (“ESG”) metrics, which seek to increase overall exposure to those issuers demonstrating a robust ESG profile. The Reference Index includes publicly issued securities by industrial, utility and financial institution issuers in global and regional markets, with principal and interest denominated in USD, EUR or GBP.

Securities are excluded that according to the index provider’s exclusionary criteria: 1) have an MSCI ESG rating below BB; 2) are issued by an issuer that does not have an MSCI ESG rating; 3) have faced very severe controversies pertaining to ESG issues (including UN Global Compact violations) over the last three years; 4) are issued by an issuer that does not have an MSCI ESG Controversy Score; or 5) are involved in alcohol, adult entertainment, controversial weapons, conventional weapons, genetically modified organisms, civilian firearms, nuclear weapons, nuclear power, oil sands, thermal coal, tobacco or unconventional oil and gas

Each of the eligible component securities is then assigned an ESG score using MSCI ESG metrics. This ESG Score is then applied to re-weight the eligible securities from their natural weights as a result of the notional size of the bond, to construct the weighting of the Reference Index. Issuers are capped at 5% of the market value of the Reference Index. The Reference Index rebalances monthly.

Source: ETFWorld.co.uk