Invesco MSCI World ESG Universal Screened UCITS ETF

Issuer: Invesco

Asset Class: Equity

TER: 19bps

Trading Currency: USD

Pays Income: False

Listing Date: 17 Jun 2019

Ticker: ESGW

ISIN: IE00BJQRDK83

This fund offers a comprehensive approach to socially responsible investing, providing core exposure to global developed equity markets while integrating a robust ESG framework. The strategy aims to replicate the performance of the MSCI World ESG Universal Select Business Screens Index. This benchmark begins with the broad universe of large and mid-cap stocks across 23 developed countries and then applies a multi-layered screening process. Initially, it utilizes MSCI's ESG Universal methodology, which systematically tilts the portfolio towards companies demonstrating strong environmental, social, and governance profiles while reducing exposure to those with weaker ESG characteristics.

Beyond the initial ESG tilting, the index incorporates stringent values-based exclusions. It screens out companies with significant business involvement in controversial areas such as tobacco, controversial weapons, thermal coal, and oil sands. Furthermore, it removes any company found to be in violation of the United Nations Global Compact principles, ensuring a baseline of responsible corporate conduct. The result is a diversified portfolio that not only prioritizes companies with superior sustainability practices but also actively avoids businesses engaged in activities that many investors deem harmful or unethical.

This investment is well-suited for individuals seeking a foundational global equity holding that aligns with their personal values. By offering broad market diversification combined with a transparent and rules-based ESG screening process, it serves as an efficient tool for building a responsible long-term portfolio. The accumulating share class structure, which automatically reinvests dividends, further enhances its appeal for investors focused on compounding capital growth over time.