Invesco MSCI Japan ESG Universal Screened UCITS ETF Acc
| Issuer: Invesco |
| Asset Class: Equity |
| TER: 19bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 12 Jan 2021 |
| Ticker: ESGJ |
| ISIN: IE00BMDBMV87 |
This fund offers a targeted yet comprehensive approach to investing in the Japanese equity market, incorporating a robust Environmental, Social, and Governance (ESG) framework. It is designed for investors seeking to align their portfolios with sustainability principles while gaining exposure to one of the world's most advanced economies. The investment vehicle aims to replicate the performance of a benchmark that comprises a wide array of Japanese companies demonstrating strong ESG profiles. By doing so, it provides a core allocation to a key developed market, suitable for those looking to integrate responsible investing into their international equity holdings without sacrificing broad market representation.
The underlying index employs a rules-based methodology that re-weights securities to favour companies with higher ESG ratings and reduce the influence of those with lower scores, all relative to their industry peers. Furthermore, the strategy implements stringent exclusionary screens, systematically removing companies with significant business involvement in controversial areas such as thermal coal, oil sands, tobacco, civilian firearms, and controversial weapons. It also excludes firms found to be in violation of the United Nations Global Compact principles. This dual approach of positive tilting and negative screening aims to enhance the portfolio's overall sustainability characteristics while maintaining a risk and return profile similar to the parent market.
By investing in this product, individuals can tap into the long-term growth potential of Japan's innovative and globally competitive corporate sector, which includes leaders in technology, industrials, and consumer goods. The fund's physical replication methodology ensures transparency by directly holding the underlying shares of the constituent companies. For investors looking for a cost-efficient, diversified, and ESG-conscious method to access Japanese equities, this investment offers a compelling and straightforward solution.
