Invesco MSCI World ESG Universal Screened UCITS ETF Acc

Investment Risks

For complete information on risks, refer to the legal documents. The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested. The Fund intends to invest in securities of issuers that manage their ESG exposures better relative to their peers. This may affect the Fund’s exposure to certain issuers and cause the Fund to forego certain investment opportunities. The Fund may perform differently to other funds, including underperforming other funds that do not seek to invest in securities of issuers based on their ESG ratings. The value of equities and equity-related securities can be affected by a number of factors including the activities and results of the issuer and general and regional economic and market conditions. This may result in fluctuations in the value of the Fund. The Fund’s performance may be adversely affected by variations in the exchange rates between the base currency of the Fund and the currencies to which the Fund is exposed.

Product description

The Invesco MSCI World ESG Universal Screened UCITS ETF Acc aims to provide the net total return performance of the MSCI World ESG Universal Select Business Screens Index (the “Reference Index”), less the impact of fees.

The Reference Index tracks the performance of large and mid-capitalisation companies in developed markets worldwide and aims to represent the performance of an investment strategy that, by adjusting the constituents’ free-float market capitalisation weights based upon certain environmental, social and governance (“ESG”) metrics, seeks to increase overall exposure to those companies demonstrating both a robust ESG profile as well as a positive trend in improving that profile.

The Reference Index is constructed from the MSCI World Index by excluding securities that: 1) have not been assessed or rated by MSCI on the basis of their ESG credentials; 2) have faced very severe controversies pertaining to ESG issues over the last three years; or 3) have a MSCI ESG Rating of CCC; or 4) are involved in controversial weapons, conventional weapons, nuclear weapons, civilian firearms, oil sands, thermal coal, tobacco or recreational cannabis. Each of the eligible component securities is then assigned a combined ESG score, which reflects MSCI’s assessment of both the security’s current ESG rating, as well as the trend in that rating, defined as the change in the security’s ESG rating over time. This combined ESG score is then applied to re-weight the eligible securities in the Reference Index.

The fund aims to achieve its objective by buying and holding, as far as possible and practical, all the securities in the Reference Index in their respective weightings. The fund is rebalanced in line with changes to the Reference Index, which is reviewed and rebalanced on a semi-annual basis. For more details on MSCI ESG Ratings, please refer to: https://www.msci.com/esg-ratings

This ETF is passively managed.