Description

The Invesco MSCI USA Universal Screened UCITS ETF Acc aims to replicate the net total return performance of the MSCI USA Universal Select Business Screens Index, after deducting associated fees. This benchmark index focuses on large and medium-capitalisation companies within the United States. Its methodology is designed to prioritize businesses that not only exhibit strong Environmental, Social, and Governance (ESG) credentials but are also demonstrating an improvement in their ESG standing, by adjusting their free-float market capitalisation weights based on specific ESG metrics. The Reference Index is constructed by initially screening companies from the broader MSCI USA Index. Securities are excluded if they: lack an ESG assessment or rating from MSCI; have been embroiled in severe ESG-related controversies within the past three years; possess an MSCI ESG Rating of 'CCC'; or are involved in controversial weapons, conventional weapons, nuclear weapons, civilian firearms, oil sands, thermal coal, tobacco, or recreational cannabis. For the remaining eligible securities, a comprehensive ESG score is calculated, which considers both MSCI's current assessment of their ESG rating and the observed change in that rating over time. This composite ESG score is then applied to determine the weightings of these eligible securities within the Reference Index. The fund seeks to achieve its objective by physically investing in and holding, as closely and practically as possible, all the constituent securities of the Reference Index in their respective proportions. The fund's portfolio is updated in alignment with the Reference Index's semi-annual reviews and rebalancing. This ETF is passively managed; therefore, an investment represents the acquisition of units in an index-tracking fund, rather than direct ownership of the underlying assets. More details on MSCI ESG Ratings are available on the MSCI website.