Invesco launches first sterling corporate bond ESG ETF

OCF 0.1%

James Baxter-Derrington
The new product will exclude firms linked to tobacco, firearms and thermal coal

The new product will exclude firms linked to tobacco, firearms and thermal coal

Invesco has today (26 February) announced the launch of the Invesco GBP Corporate Bond ESG UCITS ETF, which aims to provide low-cost passive ESG exposure for income investors.

Tracking the Bloomberg Barclays MSCI Sterling Liquid Corporate ESG Weighted Bond index, the fund will be available with an ongoing charge of 0.1%. MSCI launches new fixed income ESG and factor indices The ESG considerations are applied through exclusions of "severe controversies", including tobacco, thermal coal, oil sands, civilian firearms and military weapons, along with weightings tilted toward better rated firms. This reduces the investable universe from a broad index of "800-plus constituents" down to "just over 400 constituents". Those with a higher MSCI ESG rating of AAA or...

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