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Invesco launches multi-factor global equities ESG ETF

Tom Eckett

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Invesco has expanded its ETF range with the launch of a global equities multi-factor product with an environmental, social and governance (ESG) tilt.

The Invesco Quantitative Strategies ESG Global Equity Multi-Factor UCITS ETF (IQSA) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.6%.

IQSA is actively managed by the firm's quantitative strategies team, who will select a portfolio of global equities that offer investors exposure to quality, value and momentum factors along with strict ESG criteria. It is benchmarked against the MSCI World index.

Gary Buxton (pictured), head of EMEA ETFs at Invesco, commented: "Three of the biggest trends we have seen over the past decade are growing demand for multi-factor strategies, ESG investments and ETFs more generally.

"Proven expertise in all these areas has enabled us to respond to investor demand by delivering a multi-factor solution that adheres to strict ESG criteria and has all the benefits you would expect from our ETF structure."

Manuela von Ditfurth, senior portfolio manager at Invesco, said, "We believe this strategy could appeal to ESG-focused investors who want to capture the potential benefits of an increased exposure to factors and are not tightly constrained to traditional benchmarks.

"We use a proprietary risk model to manage the sector, country, currency and stock-specific exposures with a view to retain only those risks for which we believe the investor should be rewarded."

Domiciled in Ireland, IQSA has received around $73m in seed money prior to launch.

IQSA follows the launch of three ESG ETFs in June offering investors exposure to global, US and European equities.

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