ESG and responsible investing Explore ESG funds that align with your values
Key takeaways
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Invest in a brighter tomorrow: By selecting ESG ETFs, investors can gain exposure to dynamic sectors while also investing in a brighter tomorrow.
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Expanding our capabilities: Invesco has been a longtime leader in the thematic ESG space and has recently expanded into the integrated ESG space.
Invesco offers a wide variety of ETFs focused on ESG themes including sustainable energy, water conservation, and solar power.
For over 15 years, Invesco has been helping clients access sustainable investments.
For many investors, ESG (environmental, social, and governance) considerations are important factors when it comes to evaluating potential investments. By selecting ETFs with strategies that align with their own values, investors can gain exposure to dynamic sectors of the 21st century economy while also investing in a brighter tomorrow.
Invesco’s commitment to ESG
Invesco has long been at the forefront of the clean energy space, having launched the first clean energy ETF tracking the first clean energy index in 2005. We continue to innovate today, including the recently launched ESG Nasdaq 100 ETF (QQMG), and ESG S&P 500 Equal Weight ETF (RSPE), which are reasonable choices for broad market exposure for many investors, while offering the potential to enhance the ESG characteristics of the entire portfolio. Instead of focusing on a particular narrow theme such as solar power or green building, broad ESG offerings seek to create a version of a major index with more attractive ESG characteristics.
Source: Invesco, Morningstar, as of March 31, 2022. *Tied with Nuveen for number of ESG ETFs.
Investing for a brighter tomorrow
- We’ve conducted pilot scenarios for 1.5 and 4 degree Celsius rises in global temperature on a pool of global equity and fixed income instruments.1
The bottom line
Invesco provides a broad range of ESG-focused investment strategies and ESG-focused ETFs, empowering investors to invest in a brighter tomorrow.
ESG ETF products to consider
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The Invesco ESG NASDAQ 100 ETF (Fund) is based on the Nasdaq-100 ESG Index (Index). The Fund will invest at least 90% of its total assets in the securities that comprise the Index. The Index is designed to measure the performance of companies included in the Nasdaq-100 Index that also meet environmental, social and governance ("ESG”) criteria. To satisfy the ESG criteria, an issuer must not be involved in certain specific business activities, such as alcohol, cannabis, controversial weapons, gambling, military weapons, nuclear power, oil & gas, and tobacco. Additionally, an issuer must be deemed compliant with the United Nations Global Compact principles, meet business controversy level requirements, and have an ESG Risk Rating Score that meets the requirements for inclusion in the Index. The Fund and Index are rebalanced quarterly and quarterly in March, June, September, and December.INCEPTION DATE: 2021-10-27
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ETF,Equity RSPE
Invesco ESG S&P 500 Equal Weight ETF
The Invesco ESG S&P 500 Equal Weight ETF (Fund) is based on the S&P 500 Equal Weight ESG Leaders Select Index (Index). The Fund will invest at least 90% of its total assets in securities that comprise the Index. The Index is designed to measure the equal weighted performance of securities included in the S&P 500 Equal Weight Index that also meet an environmental, social and governance (“ESG”) criteria, while maintaining similar overall industry group weights as the S&P 500 Equal Weight Index. Each security is given an “ESG score” that seeks to identify companies well-equipped to recognize and respond to emerging sustainability opportunities and challenges in the global market. Industry-specific questionnaires are used to analyze companies’ custom industries derived from Global Industry Classification Standard (“GICSS&P 500”). Companies provide up to 1,000 data points in response to the questionnaires which is used to score each company’s performance in relation to each specific ESG subject. If a company chooses not to actively participate in the assessment, it may be assessed based on publicly available information. Companies are ranked from highest to lowest according to their ESG scores, and the top 40% of constituents within each GICS S&P 500 industry group generally are included in the Index. The Fund and the Index are rebalanced quarterly.INCEPTION DATE: 2021-11-17 -
ETF,Equity ERTH
Invesco MSCI Sustainable Future ETF
The Invesco MSCI Sustainable Future ETF (Fund) is based on the MSCI Global Environment Select Index (Index). The Fund will generally invest at least 90% of its total assets in securities that comprise the Index. The Index is comprised of companies that focus on offering products or services that contribute to a more environmentally sustainable economy by making a more efficient use of global resources. The Index is designed to maximize exposure to six Environmental Impact Themes: alternative energy, energy efficiency, green building, sustainable water, pollution prevention and control, and sustainable agriculture. The Fund and the Index are rebalanced quarterly. Effective at the close of markets on March 24, 2021, the Fund’s name, ticker, underlying index, index provider, objective and strategy changed. The Fund’s name changed from the Invesco Cleantech ETF to the Invesco MSCI Sustainable Future ETF, its ticker changed from PZD to ERTH, its Underlying Index changed from the Cleantech Index to the MSCI Global Environment Select Index, the index provider changed from Cleantech Indices LLC to MSCI Inc., its objective changed to track the investment results of the new index, and its strategy changed to generally invest 90% of its total assets in securities that comprise the new Underlying Index. See the Prospectus for more information.INCEPTION DATE: 2006-10-24 -
ETF,Equity PHO
Invesco Water Resources ETF
The Invesco Water Resources ETF (Fund) is based on the NASDAQ OMX US Water Index (Index). The Fund generally will invest at least 90% of its total assets in common stocks and American depositary receipts (ADRs) and global depositary receipts (GDRs) of companies in the water industry that comprise the Underlying Index. The Underlying Index seeks to track the performance of US exchange-listed companies that create products designed to conserve and purify water for homes, businesses and industries. The Fund and the Index are rebalanced quarterly and reconstituted annually in April.INCEPTION DATE: 2005-12-06 -
ETF,Equity TAN
Invesco Solar ETF
The Invesco Solar ETF (the "Fund") is based on the MAC Global Solar Energy Index (the "Index"). The Fund will invest at least 90% of its total assets in the securities, American depositary receipts (ADRs) and global depositary receipts (GDRs) that comprise the Index. The Index is comprised of companies in the solar energy industry. The index is computed using the net return, which withholds applicable taxes for non-resident investors. The Fund and the Index are rebalanced quarterly.INCEPTION DATE: 2008-04-15 -
ETF,Equity PBW
Invesco WilderHill Clean Energy ETF
The Invesco WilderHill Clean Energy ETF (Fund) is based on the WilderHill Clean Energy Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is composed of stocks of companies that are publicly traded in the United States and engaged in the business of advancement of cleaner energy and conservation. The Fund and the Index are rebalanced and reconstituted quarterly.INCEPTION DATE: 2005-03-03
How to invest in ETFs
Click below to explore ways to invest, or view our wide range of ETF products.
Additional resources
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ESG at Invesco
Learn more about Invesco's commitment to sustainable investing, and explore our lineup of ESG-themed ETFs, mutual funds, unit investment trusts, and SMAs -
ESG Products
Investing in sustainable companies can potentially lead to better outcomes for investor portfolios and our planet. Take the time to review our ESG (environmental, social, governance) product lineup and discover investments that best meet the needs of your portfolio and reflect the sustainability issues that matter most to you.
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There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Underlying Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.
Investments focused in a particular industry or sector, are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
The ESG considerations assessed as part of the investment process to implement its investment strategy in pursuit of a Fund’s investment objective may vary across types of eligible investments and issuers, and not every ESG factor may be identified or evaluated for every investment. A Fund’s portfolio will not be solely based on ESG considerations, and therefore the issuers in which the Fund invests may not be considered ESG-focused companies. The incorporation of ESG factors may affect a Fund’s exposure to certain companies or industries and may not work as intended. A Fund may underperform other funds that do not assess an issuer’s ESG factors or that use a different methodology to identify and/or incorporate ESG factors. Information used by a Fund to evaluate such factors may not be readily available, complete or accurate, and may vary across providers and issuers as ESG is not a uniformly defined characteristic. There is no guarantee that the evaluation of ESG considerations will be additive to a Fund’s performance.
The opinions referenced above are those of the author as of April 22, 2021. These comments should not be construed as recommendations, but as an illustration of broader themes. Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions; there can be no assurance that actual results will not differ materially from expectations.
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