Invesco has launched a US equity ETF that tracks a version of the S&P 500 index aligned with a 1.5°C climate scenario.
The Invesco S&P 500 CTB Net Zero Pathway ESG UCITS ETF, which is an Article 8 fund under SFDR, charges 0.09% a year.
The Invesco ETF will seek to replicate the S&P 500 Climate Transition Base Pathway-Aligned ESG Index, which excludes securities that are involved in tobacco, controversial weapons, oil sands, small arms, military contracting or thermal coal; do not comply to the UN Global Compact principles; or are not covered by the index provider’s ESG data solution.
See also: Invesco and Castlefield drop ESG-related terms in fund names
Using this methodology, the ETF aims to mitigate climate risks and provide greater exposure to opportunities in the transition towards decarbonisation.
Gary Buxton, head of EMEA ETFs and indexed strategies at Invesco, said: “Many investors who want to include climate-related objectives in their portfolios also want similar performance to standard benchmarks.
“These two aims can be at odds with each other, so investors need to understand what they want to achieve personally with their investment and the acceptable level of deviation from the benchmark.
“We believe our new ETF offers investors the potential for closer tracking and a more representative path towards decarbonisation.”
This article first appeared on PA Future’s sister site Portfolio Adviser
