Description

This Invesco MSCI USA Universal Screened UCITS ETF Acc endeavors to replicate the net total return performance of the MSCI USA Universal Select Business Screens Index, after accounting for fees. This benchmark index encompasses large and mid-capitalisation companies based in the United States. Its core objective is to implement an investment strategy that enhances exposure to companies demonstrating strong environmental, social, and governance (ESG) practices, as well as a positive trajectory in improving these credentials, by adjusting their market capitalisation weightings based on specific ESG metrics. The Reference Index is constructed by starting with the broader MSCI USA Index and systematically excluding securities that: 1. Have not received an ESG assessment or rating from MSCI. 2. Have been embroiled in very severe ESG-related controversies within the past three years. 3. Carry an MSCI ESG Rating of 'CCC'. 4. Are involved in industries such as controversial weapons, conventional weaponry, nuclear armaments, civilian firearms, oil sands, thermal coal, tobacco, or recreational cannabis. Subsequently, eligible companies are assigned a composite ESG score. This score integrates both their current MSCI ESG rating and the observable trend in that rating over time. This comprehensive ESG score then influences their re-weighting within the Reference Index. The fund aims to achieve its objective through physical replication, investing in and holding, as far as practicable, all the constituent securities of the Reference Index in their corresponding proportions. It undergoes rebalancing to align with the Reference Index, which is itself reviewed and adjusted semi-annually. This ETF employs a passive management approach. Investors acquire units in the fund, which tracks the index, rather than directly owning the underlying assets.