Invesco adds Nasdaq 100 ESG ETF

Invesco has launched the Invesco Nasdaq-100 ESG UCITS ETF.

Invesco says the new fund is the only ETF in Europe providing access to an ESG-enhanced version of Nasdaq’s leading benchmark. Companies are ESG evaluated and weighted using ESG Risk Ratings from Sustainalytics.

The index is constructed by first excluding securities that: (1) are involved in adult entertainment, alcohol, arctic oil and gas exploration, recreational cannabis, controversial weapons, gambling, military weapons, nuclear power, oil and gas, oil sands, riot control, shale energy, small arms, thermal coal or tobacco; (2) do not comply with the principles of the UN Global Compact or have a high controversy score; or (3) have a high ESG Risk Rating. Each eligible security is then reweighted by a factor of its market capitalisation and Sustainalytics ESG Risk Rating Score. The index is reconstructed and rebalanced quarterly.

Anna Paglia, Global Head of ETFs and Indexed Strategies at Invesco, said: “Invesco has been fortunate to work in lockstep with Nasdaq for over two decades, finding beneficial ways to bring investors all over the globe access to Nasdaq-listed companies. Today’s launch celebrates 15 years since we began working with Nasdaq on ESG products. We are confident that the new Invesco NESG will bridge innovation and ESG to help investors meet their investment outcomes.”