Description

This Invesco ETF aims to deliver the net total return performance of the MSCI Europe Universal Select Business Screens Index (the "Reference Index"), after accounting for management fees. The Reference Index tracks prominent and mid-sized European companies, embodying an investment approach that utilizes specific Environmental, Social, and Governance (ESG) criteria to modify the market capitalization weighting of its components. This strategy seeks to increase exposure to companies that not only exhibit a strong ESG standing but also demonstrate a positive trajectory in enhancing that standing. To construct this index, the MSCI Europe Index is filtered, systematically excluding companies that: (1) lack an MSCI ESG assessment or rating; (2) have been implicated in significant ESG-related scandals within the past three years; (3) possess an MSCI ESG Rating of "CCC"; or (4) are active in industries such as controversial weapons, conventional weapons, nuclear weapons, civilian firearms, oil sands, thermal coal, tobacco, or recreational cannabis. Following these exclusions, each remaining eligible security is assigned a comprehensive ESG score. This score incorporates MSCI's evaluation of both its current ESG performance and the evolution of that performance over time. This comprehensive ESG score is then utilized to adjust the weighting of these eligible securities within the Reference Index. The fund endeavors to achieve its objective by physically replicating the Reference Index, directly acquiring and holding, to the greatest extent feasible, all its constituent securities according to their specified proportions. The fund's portfolio undergoes rebalancing in alignment with adjustments made to the Reference Index, which itself is reviewed and updated twice a year. This ETF employs a passive management approach. Investing in this fund means purchasing shares in an index-tracking vehicle, rather than directly owning the fund's underlying assets. For more information on MSCI ESG Ratings, please consult their website.