Invesco S&P World Information Technology ESG UCITS ETF (Acc)
| Issuer: Invesco |
| Asset Class: Equity |
| TER: 18bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 17 Apr 2023 |
| Ticker: WDTE |
| ISIN: IE000Q0IU5T1 |
This fund offers targeted exposure to the global information technology sector with an integrated Environmental, Social, and Governance (ESG) filter. It aims to replicate the performance of the S&P World Information Technology ESG Enhanced Index, which is derived from the broader S&P Developed World Information Technology index. The underlying benchmark employs a rigorous screening process, excluding companies involved in controversial activities such as tobacco and certain weapons, as well as those with low United Nations Global Compact scores. It then reweights the remaining constituents to enhance the overall ESG profile, providing investors with access to the tech sector's growth potential while adhering to sustainable investing principles.
The portfolio is composed of large-cap technology companies primarily from the United States, but also includes significant holdings from other developed nations across Europe and Asia. Key sub-sectors represented are software and services, semiconductors, and technology hardware. This composition makes the fund suitable for investors looking to capitalize on long-term secular trends like digitalization, cloud computing, artificial intelligence, and the Internet of Things. By using a physical replication method, the fund holds the actual shares of the companies in the index, which ensures transparency and a direct investment in the underlying assets.
This product is tailored for investors with a long-term perspective who are optimistic about the global technology industry's future and wish to incorporate sustainability criteria into their portfolios. Given its specific sector focus, it carries a higher concentration risk compared to broadly diversified global equity funds and is best utilized as a satellite holding to complement a core portfolio. As an accumulating share class, all dividends are automatically reinvested, which is tax-efficient and ideal for investors focused on compounding their returns over time.
