Invesco MSCI Emerging Markets ESG Universal Screened UCITS ETF Acc

Issuer: Invesco

Asset Class: Equity

TER: 19bps

Trading Currency: USD

Pays Income: False

Listing Date: 12 Jul 2021

Ticker: ESEM

ISIN: IE00BMDBMY19

This fund offers a strategic approach to investing in the growth potential of developing economies through a diversified portfolio of large and mid-capitalisation companies across various emerging markets. By aiming to replicate the performance of its specific benchmark index, the investment provides broad exposure to sectors and countries that are key drivers of global economic expansion. It serves as a core building block for investors looking to capture the dynamic opportunities present in markets such as China, Taiwan, India, and Brazil, all within a single, transparent, and tradable investment vehicle. The structure is designed to efficiently capture the market's return profile over the long term.

What sets this investment apart is its integration of Environmental, Social, and Governance (ESG) principles into the selection process. The underlying index employs a robust screening methodology that favours companies with strong sustainability profiles and positive ESG momentum. Simultaneously, it applies negative screens to exclude firms involved in controversial business activities, including controversial weapons, civilian firearms, tobacco, thermal coal, and oil sands. This dual approach ensures that the portfolio is aligned with the values of socially conscious investors, seeking not only financial returns but also a positive impact, by avoiding companies that may pose significant long-term ESG risks.

This financial instrument is particularly suitable for long-term investors focused on capital appreciation. As an accumulating share class, any dividends paid by the underlying companies are automatically reinvested back into the fund, which can enhance compound growth over time without creating taxable events for the investor. This combination of broad emerging market exposure, a rigorous ESG screening process, and an efficient reinvestment strategy makes it a compelling option for those looking to build a diversified, forward-looking portfolio that balances growth objectives with responsible investing principles.