Today, London Stock Exchange welcomes Invesco for the newest addition to the Invesco Nasdaq Innovation Suite, a new Environmental, Social and Governance (ESG) ETF: the Invesco Nasdaq-100 ESG UCITS ETF.
The Nasdaq-100 index has long been associated with growth and innovation, including many of today’s leading-edge companies, such as Apple, Amazon, Netflix and Microsoft. The Invesco Nasdaq-100 ESG UCITS ETF (London Stock Exchange ticker: NESG) offers investors access to the world’s innovative companies, all while aligning with investors’ ESG values.
Gary Buxton, Head of EMEA ETFs and Indexed Strategies at Invesco said:
“Invesco has been fortunate to work in lockstep with Nasdaq and London Stock Exchange for over two decades, finding beneficial ways to bring investors all over the globe access to Nasdaq-listed companies,”
“Today’s launch will mark our collaboration with Nasdaq on over 50 products globally. We are confident that the new Invesco Nasdaq-100 ESG UCITS ETF will bridge innovation and ESG to offer every type of investor a unique way to meet their desired investment outcomes.”
The Invesco Nasdaq Innovation Suite now includes four different products:
- Invesco EQQQ Nasdaq-100 UCITS ETF (EQQQ1)
- Invesco Nasdaq-100 ESG UCITS ETF (NESG)
- Invesco Nasdaq-100 Swap UCITS ETF (EQQS2)
- Invesco Nasdaq Next Generation 100 UCITS ETF (EQQJ)
While the original composition of the Nasdaq-100 Index is already predisposed to companies with favourable ESG profiles, the Nasdaq-100 ESG Index adds another parameter. Constituents are filtered through an integrated Sustainalytics ESG model that weights companies based on how effectively they are managing ESG risk, rewarding those with a lower risk. Through this framework, only six companies in the Nasdaq-100 Index have been removed. All remaining companies have been completely reweighted, resulting in a materially different composition than the parent index.
Since its inception over 30 years ago, the NASDAQ-100 Index has become the world’s preeminent large-cap growth index The Nasdaq-100 ESG index aims to offer a similar performance profile to the parent index, but with significant improvements in ESG characteristics. Due to the exclusion of utility stocks and reduction of companies exposed to climate-related risks, the Nasdaq-100 ESG index also has a lower carbon intensity score compared to the parent index. One common thread running through Nasdaq-listed companies is consistently higher dollar spend on research & development.3 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.
- GBP traded share class is also available (BBG ticker: EQJS)
- GBP traded share class is also available (BBG ticker: EQSG)
- Bloomberg L.P, Nasdaq-100 companies R&D 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. (Ticker NYSE: IVZ) is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. With offices in more than 20 countries, our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. For more information, visit invesco.com/corporate.
INVESTOR WARNING: Your capital is at risk. You may not get back the amount you invested.
The prospectus documentation describing the products, risks and related costs of Invesco’s exchange-traded products as well as information on their portfolio composition are available for residents of countries where such products are authorised for sale at etf.invesco.com.
The products described on etf.invesco.com are not suitable for everyone. Investors’ capital is at risk and they may get back less than they invested. Investors should not deal in these products unless they understand their nature and the extent of their exposure to risk. The value of these products can go down as well as up and can be subject to volatility due to factors such as price changes in the underlying instrument and interest rates.
It is recommended that potential investors study the prospectus before investing.
UCITS ETF’s units / shares purchased on the secondary market cannot usually be sold directly back to UCITS ETF. Investors must buy and sell units / shares on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units / shares and may receive less than the current net asset value when selling them.
This document is by way of information only. Views and opinions are based on current market conditions and are subject to change.
This communication has been issued by Invesco Investment Management Limited, Central Quay, Riverside IV, Sir John Rogerson’s Quay, Dublin 2, Ireland and Invesco Asset Management Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire, RG9 1HH, UK. Authorised and regulated by the Financial Conduct Authority.