Invesco is launching the first sterling corporate bond ESG ETF in Europe.
The Invesco GBP Corporate Bond ESG UCITS ETF uses a Bloomberg Barclays fixed income index and MSCI for its ESG research. The Index comprises sterling-denominated investment grade, fixed-rate securities. Invesco says bonds must be issued by companies in developed markets and have £350 million minimum par amount outstanding. Any company involved in tobacco, thermal coal, oil sands, civilian firearms or military weapons is excluded from the Index. The weights of the constituents are then adjusted based upon ESG metrics.