Invesco Canada Ltd. (“Invesco”) today announced the launch of two new exchanged-traded funds (ETFs) that expand its Environmental, Social and Governance (ESG) and innovation ETF offerings. The launch of Invesco ESG NASDAQ 100 Index ETF (QQCE, QQCE.F) and Invesco ESG NASDAQ Next Gen 100 Index ETF (QQJE, QQJE.F) advances the firm’s goal of offering investors the benefit of personalizing their exposure to the innovative companies listed on The Nasdaq Stock Market LLC.
“As a continuation of our critical partnership and collaboration with Nasdaq we have developed the next generation solution for investors seeking access to innovative companies as part of their portfolio” said Pat Chiefalo, Head of ETFs & Indexed Strategies Canada, Invesco. “Today’s ETF launch provides access to disruptive market themes filtered through Nasdaq’s robust ESG criteria, supported by Sustainalytics’ market leading ESG data, offering investors another unique way to help meet their desired investment outcomes.”
Through the launch of QQCE and QQJE, which track the performance of the Nasdaq-100 ESG Index™ and the Nasdaq Next Generation 100 ESG IndexTM, respectively, Invesco provides investors the option to access the same companies as the Invesco NASDAQ 100 Index ETF (QQC and QQC.F) and Invesco NASDAQ Next Gen 100 Index ETF (QQJR and QQJR), but with a tilt towards ESG-related values.
While the Nasdaq-100 Index® and the Nasdaq Next Generation 100 Index currently hold many companies that score well on ESG assessments1 in their own right, the Nasdaq-100 ESG Index and Nasdaq Next Generation 100 ESG Index both include additional layers of ESG analysis. In constructing these ESG indexes, Nasdaq filters constituent companies through a robust set of ESG criteria utilizing Sustainalytics’ market leading ESG data and assigns ESG risk scores to the constituent companies. The indexes adjust constituent company weightings based on Sustainalytics’ assessment of how effectively the companies are managing ESG risk, more favorably weighing companies with low ESG risk scores. In applying this methodology, every company remaining in the indexes is reweighted in consideration of its ESG risk score. At the most recent quarterly reconstitution, six companies in the Nasdaq-100 Index did not qualify for inclusion in the Nasdaq-100 ESG Index, and 10 companies in the Nasdaq Next Generation 100 Index did not qualify for inclusion in the Nasdaq Next Generation 100 ESG Index.2
“The interest in integrating ESG considerations into investment portfolios is on the rise globally. We are pleased to work with Invesco to introduce a refined and ESG-friendly version of one of the world’s most preeminent benchmarks,” said Lauren Dillard, Executive Vice President and Head of Investment Intelligence, Nasdaq. “The strength of Nasdaq-100 Index underscores the innovation and transformative changes of the companies within their respective industries. Our partnership with Invesco continues to expand the suite of Nasdaq-100 and other Nasdaq index-based products to provide investors with optionality that can meet their preferences and help achieve their investment goals.”
Since its inception over 35 years ago, the Nasdaq-100 Index has become the world’s preeminent large-cap growth index.3 Although the Nasdaq-100 Index is most closely connected with the technology sector, approximately 50% of the index constituents come from other sectors and industries.4 However, many of the companies in the Nasdaq-100 Index, regardless of their sectors, consistently have a higher dollar spend on research & development.5 For this reason, they are often well-positioned to capitalize on transformative, long-term themes in the marketplace, such as the technology driving clean energy and sustainable resources.
The initial offering of Invesco ESG NASDAQ 100 Index ETF (QQCE, QQCE.F) and Invesco ESG NASDAQ Next Gen 100 Index ETF (QQJE, QQJE.F) has now closed. Units in the ETFs will be available for trading on TSX when the market opens today.
Invesco Ltd Americas ETF suite currently has over US$364.2 billion in assets under management (AUM) as of September 30, 2021. Invesco Canada Ltd. is a subsidiary of Invesco Ltd.
1 Based on a comparison of the weighted average Sustainalytics ESG Risk Scores of the constituents of prominent US equities indices as at September 30, 2021 conducted by Invesco.
2 As of the most recent quarterly reconstitution on September 20, 2021.
3 There are hundreds of products tied to the Nasdaq-100 globally, including ETFs, Options, Annuities, Futures and more as of September 30, 2021.
4 Bloomberg L.P., The technology sector makes up 48.3% of the Nasdaq-100 Index as of September 30, 2021.
5 Bloomberg L.P, Nasdaq-100 companies Research & Development reinvestment rate is 9.8% as compared to 7.3% by S&P 500 companies as of April 5, 2021.
About Invesco Ltd.
Invesco Ltd. is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. With offices in more than 20 countries, Invesco managed $1.5 trillion in assets on behalf of clients worldwide as of September 30, 2021. For more information, visit www.invesco.com.
Nasdaq (Nasdaq: NDAQ) is a global technology company serving the capital markets and other industries. Our diverse offering of data, analytics, software and services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on Twitter @Nasdaq, or at www.nasdaq.com.
ESG Risk Ratings measure a company’s exposure to industry-specific material ESG risks and how well a company is managing those risks. They identify five categories of ESG risk severity that could impact a company’s enterprise value: Negligible 0-10, Low 10-20, Medium 20-30, High 30-40 and Severe 40+.
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There are risks involved with investing in ETFs. Please read the prospectus for a complete description of risks relevant to the ETF. Ordinary brokerage commissions apply to purchases and sales of ETF units. The Invesco ETF seeks to replicate, before fees and expenses, the performance of the applicable index, and is not actively managed. This means that the sub-advisor will not attempt to take defensive positions in declining markets and the ETF will continue to provide exposure to each of the securities in the index
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