Why ESG now?

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Why ESG ETFs?

ESG ETFs have seen significant success in 2020, gathering almost $11.5bn inflows, a 34% growth in net new assets in Europe year to date.1

As investors begin to consider recovery strategies, now could be a good time to switch your current exposures to those that incorporate ESG criteria.

However, as investors consider incorporating ESG ETFs into their portfolios, here are the main challenges they’ve shared with us: 

Is ESG more than just marketing hype?
Across EMEA, ESG ETFs have seen positive inflows every month since January 2017.2 In fact, they have captured 60.7% of the net new assets into ETFs so far this year.
Understand the strategies

Does ESG investing sacrifice performance?
The decade old perception that an investor must be willing to sacrifice performance to adhere to their ethical principles appears to be changing. Studies now show a possible link between a company’s ESG and financial performances. 
Read the evidence

How can investors capture ESG effectively?​
There are around 300 ESG products out there. ETFs offer a clear methodology for capturing ESG.  
Explore your options

Learn how ESG ETFs are addressing investor challenges

Why Invesco for ESG?

ESG investing is a fundamental commitment at Invesco. We believe that ESG aspects can have an impact on sustainable value creation as well as risk management, and that companies with ESG momentum may present investment opportunities. We integrate ESG risk and opportunity factors into investment decisions, differentiated by asset classes and decentralized by local investment centres.

Invesco are highly qualified to facilitate our clients’ ESG investing journey amid the evolving regulatory requirements and market landscapes:

30 years’ experience in ESG strategies

 

1, 000 meetings with investee companies on ESG - an increase of 43% over the prior one-year period*

82% of times, the investee company reached out to us directly*

*Shareholder engagement for the period 1 July 2018 – 30 June 2019 Source: Invesco.

Learn more about Invesco's ESG strategy

 

Discover our ESG ETFs:

Invesco MSCI World ESG Universal Screened UCITS ETF 

Designed to be core equity holdings, with key exclusions and similar characteristics to parent MSCI USA, Europe or World indices

Invesco Quantitative Strategies ESG Global Equity Multi-Factor UCITS ETF 

Active management aiming to maximise exposure to Quality, Value and Momentum factors

Invesco S&P 500 ESG UCITS ETF 
Similar risk-return profile as S&P 500, but with improved ESG profile and focus on industry leaders 
Invesco GBP Corporate Bond ESG UCITS ETF Dist 
The first GBP corporate bond ETF in Europe with ESG factors, combining key exclusions and a focus on industry leaders

 

 

Source: Bloomberg, as at 29 May 2020
2 Bloomberg as at 15 May 2020

Investment risks

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.

Invesco GBP Corporate Bond ESG UCITS ETF Dist

Debt instruments are exposed to credit risk which relates to the ability of the borrower to repay the interest and capital on the redemption date.

Changes in interest rates will result in fluctuations in the value of the fund.

The fund invests in securities based on their ESG exposures. This may affect the Fund’s exposure, limit investment opportunities and cause the fund to underperform funds not seeking investments based on ESG ratings.

Invesco S&P 500 ESG UCITS ETF

This fund enters into transactions which expose it to the risk of bankruptcy, or other types of default, by the counterparties to those transactions.

This fund enters into swap agreements which provide the performance of the Reference Index.  These imply a range of risks including the possibility of an adjustment to, or even the early termination of, the swap agreement.

The fund invests in securities based on their ESG exposures. This may affect the Fund’s exposure, limit investment opportunities and cause the fund to underperform funds not seeking investments based on 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.

Important Information

This webpage contains information that is for discussion purposes only, and is intended only for professional investors in Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden and the UK, Qualified Clients in Israel, and Qualified Investors in Switzerland. Marketing materials may only be distributed in other jurisdictions in compliance with private placement rules and local regulations.

Data as at 7th May 2020 unless otherwise stated. You consent to communicating with us in English, unless you inform us otherwise.

All investment decisions must be based only on the most up to date legal offering documents. The legal offering documents (fund and share class specific Key Investor Information Document (KIID), prospectus, annual & semi-annual reports, articles) are available free of charge on our website etf.invesco.com and from the issuers or relevant information agent.

This webpage is marketing material and is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.

This webpage should not be considered financial advice. Persons interested in acquiring the product should inform themselves as to (i) the legal requirements in the countries of their nationality, residence, ordinary residence or domicile; (ii) any foreign exchange controls and (iii) any relevant tax consequences.

Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.

UCITS ETF’s units / shares purchased on the secondary market cannot usually be sold directly back to UCITS ETF. Investors must buy and sell units / shares on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units / shares and may receive less than the current net asset value when selling them.

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No action has been taken or will be taken in Israel that would permit a public offering of the Fund or distribution of this webpage to the public in Israel. This Fund has not been approved by the Israel Securities Authority (the ISA). Accordingly, the Fund shall only be sold in Israel to an investor of the type listed in the First Schedule to the Israeli Securities Law, 1968, which has confirmed in writing that it falls within one of the categories listed therein (accompanied by external confirmation where this is required under ISA guidelines), that it is aware of the implications of being considered such an investor and consents thereto, and further that the Fund is being purchased for its own account and not for the purpose of re-sale or distribution. This webpage may not be reproduced or used for any other purpose, nor be furnished to any other person other than those to whom copies have been sent. Nothing in this webpage should be considered investment advice or investment marketing as defined in the Regulation of Investment Advice, Investment Marketing and Portfolio Management Law, 1995 (“the Investment Advice Law”). Investors are encouraged to seek competent investment advice from a locally licensed investment advisor prior to making any investment. Neither Invesco Ltd. Nor its subsidiaries are licensed under the Investment Advice Law, nor does it carry the insurance as required of a licensee thereunder. This webpage does not constitute an offer to sell or solicitation of an offer to buy any securities or fund units other than the fund offered hereby, nor does it constitute an offer to sell to or solicitation of an offer to buy from any person or persons in any state or other jurisdiction in which such offer or solicitation would be unlawful, or in which the person making such offer or solicitation is not qualified to do so, or to a person or persons to whom it is unlawful to make such offer or solicitation.

The publication of the supplement in Italy does not imply any judgment by CONSOB on an investment in a product. The list of products listed in Italy, and the offering documents for and the supplement of each product are available: (i) at etf.invesco.com (along with the audited annual report and the unaudited half-year reports); and (ii) on the website of the Italian Stock Exchange borsaitaliana.it.

This webpage has been communicated by Invesco Asset Management Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire, RG9 1HH, United Kingdom, Invesco Investment Management Limited, Central Quay, Riverside IV, Sir John Rogerson's Quay, Dublin 2, Ireland and Invesco Asset Management (Schweiz) AG, Talacker 34, 8001 Zurich, Switzerland,

EMEA/2020