New Listing

Invesco launches clean energy ETF

GCLE is a mirror strategy of the US-listed Invesco Global Clean Energy ETF (PBD)

Tom Eckett

Gary Buxton headshot

Invesco has become the latest issuer in Europe to launch a global clean energy ETF, ETF Stream can reveal.

The Invesco Global Clean Energy UCITS ETF (GCLE) is listed on the London Stock Exchange (LSE) and Deutsche Boerse with a total expense ratio (TER) of 0.6%.

GCLE is a mirror strategy of the US-listed Invesco Global Clean Energy ETF (PBD) which has $440m assets under management (AUM) since launch in June 2007.

Tracking the WilderHill New Energy Global Innovation index, GCLE offers exposure to companies engaged in the advancement of cleaner energy and conservation including areas such as wind, solar, biofuels, hydro and other renewable energy sources.

The ETF currently invests in 117 companies with its biggest weightings in the industrials (36.7%), utilities (24.6%) and information technology (21.3%) sectors.

Rebalanced quarterly, GCLE is equal-weighted in order to reduce concentration risk.

Gary Buxton (pictured), head of EMEA ETFs and indexed strategies at Invesco, said: “The biggest and arguably most urgent challenge facing the world is how to avoid climate catastrophe. The solution hinges on our transition to cleaner sources of energy, which is a diverse and rapidly evolving space.

"Tackling the environmental crisis is a key pillar in an ESG strategy, and we will continue bringing to market funds that enable investors to align their investments with their principles."

Clean energy ETFs shot the lights out in 2020 with PBD returning 144.1% over the 12 months as US President Joe Biden’s pledge of $2trn in climate-related infrastructure investments drove investor inflows.

The iShares Global Clean Energy UCITS ETF (INRG) reaped the rewards in Europe securing $3.6bn net inflows which drove returns of 136% in 2020, the most across all European-listed ETFs.

Record demand for clean energy ETFs causing liquidity risks

GCLE is the third clean energy ETF to list in Europe behind INRG and the L&G Clean Energy UCITS ETF (RENW) which launched last November.

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