Description

The Invesco MSCI USA Universal Screened UCITS ETF GBP Hdg Acc aims to replicate the net total return performance of its benchmark, the MSCI USA Universal Select Business Screens Index, after accounting for fees. Its GBP Hedged Acc share class actively manages currency risk, employing foreign exchange transactions to minimize the impact of US Dollar and British Pound fluctuations. This underlying index focuses on large and mid-capitalisation US companies, employing an investment strategy that adjusts constituent weightings based on specific Environmental, Social, and Governance (ESG) metrics. The aim is to increase exposure to firms demonstrating not only a strong current ESG profile but also a positive trend in improving their ESG credentials. The index is constructed by screening the broader MSCI USA Index, excluding securities that: lack an MSCI ESG assessment; have faced severe ESG controversies in 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. Eligible securities then receive a comprehensive ESG score, which integrates their current MSCI ESG rating with the observed trend of that rating over time. These scores are subsequently used to re-weight constituents within the index. The fund achieves its objective through physical replication, endeavoring to acquire and hold all index securities in their respective proportions as far as possible. It is rebalanced in conjunction with the index's semi-annual reviews and adjustments. This ETF is passively managed, meaning an investment represents units in the index-tracking fund, not direct ownership of the underlying assets.