Invesco S&P 500 ESG UCITS ETF Acc

Issuer: Invesco

Asset Class: Equity

TER: 9bps

Trading Currency: GBX

Pays Income: False

Listing Date: 10 Mar 2020

Ticker: SPEP

ISIN: IE00BKS7L097

This fund offers a way to invest in the core US equity market through a sustainability-focused lens. It is designed to track the performance of the S&P 500 Screened Index, which comprises large-capitalization US companies, but with important exclusions. The index applies specific screens to remove companies that are non-compliant with the United Nations Global Compact principles. Furthermore, it excludes firms with business activities related to controversial weapons, tobacco, and thermal coal. By doing so, the fund provides broad market exposure while aligning with key environmental, social, and governance (ESG) criteria, offering a more ethically-conscious alternative to a standard S&P 500 tracker.

The investment is suitable for those looking to build a core, long-term holding in US equities but who also want to ensure their capital is not allocated to businesses involved in specific controversial sectors. It can serve as a foundational piece in a diversified global portfolio, providing access to the growth potential of the world's largest economy. The transparent, rules-based screening methodology provides clarity on the portfolio's composition. As an accumulating fund, any dividends paid by the underlying companies are automatically reinvested back into the fund, which helps to enhance long-term capital growth through the power of compounding without generating immediate taxable income for the investor.

In essence, this product combines the benefits of low-cost, passive investing with a responsible investment overlay. It allows investors to capture the performance of leading US companies while adhering to specific values-based criteria, making it a compelling option for the growing number of investors who prioritize both financial returns and sustainable principles.