Description

This Invesco Exchange Traded Fund (ETF) seeks to replicate the net total return of the MSCI USA Universal Select Business Screens Index, net of fees. The underlying index targets large and mid-capitalisation US companies, employing an investment methodology that adjusts constituent weightings according to environmental, social, and governance (ESG) criteria. Its objective is to enhance exposure to firms exhibiting both robust ESG characteristics and a positive trend in their ESG development. The index's construction begins with the MSCI USA Index, from which several types of securities are excluded: those lacking an MSCI ESG assessment; companies involved in significant ESG controversies over the preceding three years; those with an MSCI ESG Rating of 'CCC'; and businesses engaged in specific contentious sectors like controversial, conventional, or nuclear weapons, civilian firearms, oil sands, thermal coal, tobacco, or recreational cannabis. Subsequently, each remaining eligible company is assigned a consolidated ESG score. This score incorporates both the security's current ESG rating and the observable change in that rating over time. This combined ESG score then determines the re-weighting of these eligible securities within the index. The fund aims to fulfill its objective primarily by physically purchasing and holding, to the greatest extent possible, all the securities within the Reference Index in their respective proportions. Its portfolio is rebalanced to align with changes in the Reference Index, which itself undergoes semi-annual reviews and adjustments. This ETF operates under a passive management strategy, tracking its specified index. An investment in this fund represents a purchase of units in an index-tracking vehicle, rather than direct ownership of the underlying assets it holds.