New Listing

Invesco expands MSCI ESG universal ETF range with double launch

Five-strong ETF range tracking MSCI Universal Business Screened ESG indices

Jamie Gordon

a man in a suit

Invesco has expanded its MSCI universal ESG ETF range with the launch of two strategies focused on Japanese and Pacific ex-Japan equities.

The Invesco MSCI Japan ESG Universal Screened UCITS ETF (ESGJ) and the Invesco MSCI Pacific ex Japan ESG Universal Screened UCITS ETF (ESPJ) are listed on the London Stock Exchange with ongoing charges figures (OCFs) of 0.19%. 

Physically-backed, the two ETFs track MSCI ESG Universal Select Business Screens indices that exclude stocks involved in controversial, conventional or nuclear weapons, civilian firearms, oil sands, thermal coal, tobacco or recreational cannabis.

Furthermore, any company with a very low MSCI ESG score, and those involved in ‘severe controversies’ over ESG issues within the last three years, are also removed from the index. 

The remaining equities are then reweighted based on a combination of their ESG scores, ESG trend scores and market cap.

The ‘myths’ around indexing and ESG

Commenting on the launches, Gary Buxton (pictured), head of EMEA ETFs and indexed strategies at Invesco, said: “With 60% of all equity ETF flows last year going into funds with an ESG objective, demand is clearly strong.

“Our suite of MSCI ESG Universal ETFs offer investors tools to construct diversified equity portfolios. We will continue building out our ESG offering in response to market opportunities and driven by investor demand.”

Chris Mellor, head of EMEA ETF equity and commodity product management at Invesco, added: “Different investors will often vary in their objectives, and this is most evident in the ESG space.

“Many investors want to reduce their portfolio’s carbon footprint and improve other ESG characteristics but at the same time maintain their overall risk and expected returns. We designed these ETFs to provide investors with materially significant ESG improvements for their core equity exposure.”

The launches add to Invesco’s existing suite of MSCI universal ESG ETFs that offer exposure to Europe, US and global equities. Unveiled in June 2019, the range has $206m assets under management (AUM).

They include the:

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