Invesco has announced the launch of the Invesco MSCI Emerging Markets ESG Universal Screened UCITS ETF.
The index is constructed from the parent MSCI Emerging Markets index, which is comprised of large- and mid-cap stocks across 26 countries, by first excluding any company involved in controversial, conventional or nuclear weapons, civilian firearms, oil sands, thermal coal, tobacco or recreational cannabis. Any company that has faced severe controversies over ESG issues in the past three years or has a very low MSCI ESG score is also removed from the index. The remaining stocks are reweighted by the product of their ESG scores, ESG trend scores and market capitalisation. Issuer weights are capped at 5% to reduce concentration risk.