Invesco expands ESG ETF Suite in Canada to offer core Canadian large-cap equity exposure
TORONTO, Oct. 8, 2020 /CNW/ -- Invesco Ltd. (NYSE: IVZ), a leading global provider of exchange-traded funds (ETFs), today announced the launch by Invesco Canada Ltd. of the Invesco S&P/TSX Composite ESG Index ETF (ticker symbol: ESGC). ESGC will be first Canadian-listed ETF to track the S&P/TSX Composite ESG Index, which uses S&P DJI's Environmental, Social and Governance criteria to select companies from the benchmark Canadian S&P/TSX Composite Index. This unique methodology offers Canadian investors access to notable Canadian companies that have a thoughtful ESG tilt while still offering a risk/return profile similar to the benchmark Index.
"Invesco has one of the longest track records in the ESG space, having launched clean tech ETFs in 2005," says Jason McKay, Head of Wealth Management Intermediaries, Canada. "The newest launch of the Invesco S&P/TSX Composite ESG Index ETF will further expand our global ESG product suite with a Canadian focus, offering investors an ESG overlay on a key benchmark of the Canadian equity market."
Invesco's first ESG ETF accessing Canadian companies offers investors the following potential benefits:
- Constituents picked from the notable S&P/TSX Composite index - The S&P/TSX Composite Index is the headline index for the Canadian equity market. The S&P/TSX Composite ESG Index was designed for investors who wish to integrate ESG components into broad-based investments without straying far from the overall profile of the S&P/TSX Composite Index.
- Competitive pricing - The Invesco S&P/TSX Composite ESG Index ETF will have a management fee of 15 basis points, making the ETF one of the most economical Canadian-focused ESG ETFs currently available in Canada.
- Core exposure - The S&P/TSX Composite ESG Index is broadly constructed to be part of an investor's core portfolio, rather than having a narrow or thematic focus.
- Straightforward methodology - A transparent and quantifiable measure to gauge ESG practice, the methodology used for the S&P/TSX Composite ESG Index is applied across all companies included in the S&P/TSX Composite Index.
- Robust measure of ESG - Each company's S&P DJI ESG score is calculated by SAM, a division of S&P Global, using data gathered from SAM's Corporate Sustainability Assessment (CSA) and publicly available disclosures.
Units of the Invesco S&P/TSX Composite ESG Index ETF begin trading on the Toronto Stock Exchange (TSX) today.
The initial offering of Invesco S&P/TSX Composite ESG Index ETF has now closed. Units in the ETF will be available for trading on TSX when the market opens today.
Growth of Invesco's Global ESG suite
The launch of the Invesco S&P/TSX Composite ESG Index ETF expands Invesco Ltd.'s growing commitment to ESG offerings globally. In the Americas, Invesco now offers nine sustainability focused ETFs, more than half with track records of over 15 years. In EMEA, Invesco has eight ESG ETFs that screen companies across three different global regions.
In recent years Invesco has strengthened its focus on the ESG space, not only in the growing suite of passive ESG products, but through a commitment to incorporating important sustainability and governance issues in its active strategies.
Invesco's Americas ETF suite has 245 ETFs with US$266B assets under management (AUM) globally as of August 2020.
S&P/TSX Composite ESG Index Composition
The S&P/TSX Composite ESG Index is market cap-weighted, targeting 75% of the float-adjusted market capitalization (FMC) of each Global Industry Classification Standard (GICS®) Industry Group within the S&P/TSX Composite. S&P/TSX Composite companies are screened to exclude those involved in tobacco production, or with a meaningful amount of revenue from tobacco; companies involved with controversial weapons1, companies meaningfully involved with thermal coal and those companies with a disqualifying UN Global Compact score. For each GICS Industry Group, companies are selected in decreasing order of S&P DJI ESG Score until 65% of the Eligible Universe's FMC is reached. Existing constituents ranked between 65% and 85% are then selected to get as close as possible to the target 75% of FMC. Constituents are FMC weighted.
"In the last year, ESG has joined the mainstream of investing as market participants increasingly see the importance and relevance of indices that incorporate sustainability data and principles and allow them to achieve their ESG investment goals while attaining performance largely in line with the market," said Reid Steadman, Managing Director and Global Head of ESG Indices at S&P DJI. "We're excited to partner with Invesco on the launch of the first ETF product in Canada based on the S&P/TSX Composite ESG Index."
Please contact Invesco at 1.800.874.6275. You can also connect with Invesco on Twitter (@InvescoCanada), LinkedIn, Facebook, or through the Invesco Canada blog.
About Invesco Ltd.
Invesco Ltd. (Ticker NYSE: IVZ) is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. With offices in 25 countries, Invesco managed US$1.1 trillion in assets on behalf of clients worldwide as of August 31, 2020. For more information, visit invesco.com.
Commissions, management fees and expenses may all be associated with investments in ETFs. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated. Please read the prospectus before investing. Copies are available from Invesco Canada Ltd. at invesco.ca.
There are risks involved with investing in ETFs. Please read the prospectus for a complete description of risks relevant to the ETF. Ordinary brokerage commissions apply to purchases and sales of ETF units. The Invesco ETF seeks to replicate, before fees and expenses, the performance of the applicable index, and is not actively managed. This means that the sub-advisor will not attempt to take defensive positions in declining markets and the ETF will continue to provide exposure to each of the securities in the index regardless of whether the financial condition of one or more issuers of securities in the index deteriorates.
The S&P/TSX Composite ESG Index is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI"), and has been licensed for use by Invesco Canada Ltd. S&P® and S&P/TSX Composite Index are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); "TSX" is a trademark of TSX, Inc., and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Invesco Canada Ltd. The Invesco S&P/TSX Composite ESG Index ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, TSX or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product nor do they have any liability for any errors, omissions, or interruptions of the S&P/TSX Composite ESG Index.
Invesco® and all associated trademarks are trademarks of Invesco Holding Company Limited, used under licence.
© Invesco Canada Ltd., 2020
1 The company is involved in the core weapon system, or components/services of the core weapon system that are considered tailor-made and essential for the lethal use of the weapon.
Media contact: Stephanie Diiorio, 212.278.9037, [email protected]
SOURCE Invesco Ltd.
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