Description

The Invesco MSCI Emerging Markets Universal Screened UCITS ETF aims to deliver the net total return performance of the MSCI EM (Emerging Markets) Universal Select Business Screens Index, accounting for fees. This benchmark index targets large and medium-sized companies in global emerging markets, with a focus on increasing investment in firms that exhibit both strong environmental, social, and governance (ESG) credentials and a positive trend in their ESG performance. The Reference Index is built by screening out companies from the broader MSCI Emerging Markets Index if they: lack an ESG assessment or rating from MSCI; have been involved in severe ESG controversies within the past three years; possess an MSCI ESG Rating of CCC; or are associated with controversial weapons, conventional weapons, nuclear weapons, civilian firearms, oil sands, thermal coal, tobacco, or recreational cannabis. Subsequently, each eligible security is given a consolidated ESG score, which factors in its current MSCI ESG rating and how that rating has evolved over time. This combined score then dictates the re-weighting of these securities within the Reference Index. The fund is passively managed, utilizing portfolio modelling and sampling methods to acquire and hold a segment of the index securities that effectively mirrors the characteristics of the entire index. This sampling approach is designed to replicate the index's performance as closely as possible while keeping the operational costs lower than those of full replication. The fund’s holdings are adjusted in line with the semi-annual reviews and rebalancing of the Reference Index. An investment in this fund represents the purchase of units in a passively managed, index-tracking vehicle, rather than direct ownership of its underlying assets.