Invesco has launched two euro-denominated corporate bond ESG ETFs.
The new ETFs are:
• Invesco EUR Corporate Bond ESG Multi-Factor UCITS ETF
• Invesco EUR Corporate Bond ESG Short Duration Multi-Factor UCITS ETF
The ETFs will invest in a portfolio of fixed-rate euro-denominated unsecured corporate bonds from global issuers with an investment grade credit rating. Up to 30% of each portfolio may be invested in unsecured corporate bonds denominated in other currencies with the currency risk hedged back to euros at the investment manager’s discretion.
The ESG policy incorporates both exclusionary criteria and a best in class approach, which selects securities from each industry that score highest according to the manager’s scoring system. A quantitative investment process is then applied to the remaining eligible securities and produces a measure of their attractiveness based on three major factors: value, low volatility and carry.