Description

This Invesco ETF (FASA.L) seeks to replicate the net total return performance of the FTSE All Share ex Investment Trusts ESG Climate Select Index, after accounting for its charges. This index primarily monitors large and mid-sized UK companies, systematically adjusting their market weighting based on specific environmental, social, and governance (ESG) factors. The goal of this methodology is to enhance exposure to businesses demonstrating strong ESG credentials, those generating a higher proportion of revenue from eco-friendly projects, and companies with lower carbon emissions and reduced fossil fuel reserves. The index is derived from the FTSE All-Share ex Investment Trusts Index but screens out firms involved in severe ESG controversies (including breaches of the UN Global Compact) or those participating in certain prohibited business activities, as defined by the Index Provider. These activities encompass Arctic oil and gas exploration, adult entertainment, controversial weapons, small arms, gambling, military contracting, nuclear power, oil sands, thermal coal, recreational cannabis, and tobacco. The index undergoes rebalancing on a quarterly basis. The fund's strategy is to achieve its objective by, as far as practical, holding all the constituent securities of the Reference Index in their respective proportions. It will adjust its portfolio in alignment with the index's quarterly rebalancing. This ETF is passively managed, meaning an investment constitutes ownership of units in an index-tracking fund, rather than direct ownership of the underlying assets.