Invesco S&P World Health Care ESG UCITS ETF (Acc)

Issuer: Invesco

Asset Class: Equity

TER: 18bps

Trading Currency: USD

Pays Income: False

Listing Date: 17 Apr 2023

Ticker: WHCE

ISIN: IE000L4EH2K5

This investment vehicle offers targeted exposure to the global healthcare sector, while incorporating a robust Environmental, Social, and Governance (ESG) screening methodology. The strategy is designed to mirror the performance of an index comprising healthcare companies from developed countries that exhibit strong ESG characteristics. By focusing on firms with leading sustainability practices, the portfolio aims to capture the long-term growth potential of the healthcare industry while mitigating risks associated with poor corporate governance or negative environmental impact. It employs a physical replication strategy, meaning it directly holds the underlying securities of the benchmark index, providing investors with direct ownership of the constituent companies.

The global healthcare industry represents a compelling long-term investment theme, underpinned by powerful secular trends such as aging populations, rising healthcare spending, and continuous innovation in biotechnology and medical devices. This sector is often considered defensive, as demand for its products and services tends to remain stable regardless of the economic cycle. The integration of an ESG framework adds another layer of resilience and potential for outperformance by filtering out companies involved in controversies and favouring those with sustainable business models. As an accumulating share class, all dividend income is automatically reinvested back into the fund, allowing for the power of compounding to enhance long-term capital growth, making it a suitable choice for investors with a long time horizon.