Invesco has announced the launch of a multi-factor exchange traded fund which will invest in a portfolio of global equities with strong sustainability characteristics.
The Invesco Quantitative Strategies ESG Global Equity Multi-Factor Ucits ETF will screen eligible companies for inclusion in the strategy against its in-house ESG criteria and award a separate score to each stock based on its attractiveness on three factors – Value, Quality and Momentum.
“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,” said Manuela von Ditfurth, IQS senior portfolio manager at Invesco.
“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.”
The launch of the new ESG multi-factor product follows the company’s launch of three ETFs in June which aim to provide lower cost exposure to customised versions of MSCI’s ESG Universal indices.
“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,” said Gary Buxton, head of EMEA ETFs at Invesco.
“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.”
The Invesco Quantitative Strategies ESG Global Equity Multi-Factor Ucits ETF is being marketed as an actively managed fund with an ongoing charge of 0.60% per year. The base currency is US dollars.
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