Description

This Invesco ETF seeks to replicate the performance of the MSCI Pacific ex Japan Universal Select Business Screens Index (the "Reference Index"), after accounting for management fees. The Reference Index primarily comprises large and mid-capitalization companies in developed Pacific nations, excluding Japan. Its design incorporates an investment strategy that adjusts the proportional weighting of constituent companies based on specific Environmental, Social, and Governance (ESG) criteria. This methodology aims to enhance exposure to firms that not only exhibit robust ESG credentials but also demonstrate a positive trajectory in improving their ESG standing. The Reference Index is formed by first drawing from the MSCI Pacific ex Japan Index, then systematically removing securities that: 1) have not received an ESG assessment or rating from MSCI; 2) have been implicated in severe ESG-related controversies within the last three years; 3) hold a low MSCI ESG Rating of CCC; or 4) are involved in controversial, conventional, or nuclear weapons, civilian firearms, oil sands, thermal coal, tobacco, or recreational cannabis. Following this screening, each eligible security is given a comprehensive ESG score by MSCI, reflecting both its current ESG rating and the historical trend of that rating. These composite ESG scores are then utilized to proportionally re-weight the qualifying securities within the Reference Index. The index is rebalanced every six months. Additional information on MSCI ESG Ratings is available through their published resources. This ETF employs a passive management approach, meaning an investment represents the acquisition of units in an index-tracking fund, rather than direct ownership of the underlying assets held by the fund.