Invesco Ltd. (NYSE: IVZ), a leading global asset management firm, announced today that it will offer investors an ESG-tilted version of its successful Invesco S&P 500 Equal Weight ETF (RSP). The Invesco ESG S&P 500 Equal Weight ETF (RSPE) makes it easy to invest in an equal weight ESG solution that captures many of the companies of the S&P 500 Index, furthering investor choice for equal weight smart beta.
“Invesco pioneered smart beta1 ETF investing nearly 20 years ago and we have been a leader in ESG ETFs for over a decade. RSPE brings these two concepts together, creating the simplest way to invest in a balanced portfolio of the ESG leaders of the S&P 500 Index,” said John Hoffman, Americas Head of Invesco ETFs and Indexed Strategies. “We are pleased to collaborate with S&P Dow Jones Indices today to bring investors the addition of ESG to smart beta screens through the Invesco ESG S&P 500 Equal Weight ETF.”
Since RSP launched in 2003 and started the smart beta conversation, the smart beta space has matured and become a ubiquitous part of investors’ portfolios. The benefits found from equal weighting the S&P 500 Index – a strategy that has been outperforming its cap weighted benchmark by net asset value 88% cumulatively since inception – continues to gain traction with investors, making RSP one of the largest smart beta ETFs in the world with over $30 billion in assets under management (AUM).2
In 2021, RSP generated over $7 billion in net new assets as investors looked to equal weight as a way to help mitigate concentration risk, gain diversification3, provide more access to mid- and small-cap equities and as a potentially better core. RSPE will offer the same benefits of the equal weight investing, helping to mitigate concentration risk in a low-cost4, tax efficient manner5, but with an improved ESG-score.
RSPE, which tracks the S&P 500 Equal Weight ESG Leaders Select Index®, starts with a universe of constituents of the S&P 500 Equal Weight Index. The S&P 500 Equal Weight ESG Leaders Select Index then uses a robust ESG-overlay, including an integrated ESG-filter methodology and S&P DJI ESG Scores, to select ESG-leaders from each industry group in the S&P 500 Equal Weight Index. This methodology integrates ESG into a broad based, equal weight benchmark to offer a new choice for investors who are interested aligning their personal ESG values to a strategy known for being a core holding.
Both RSP and RSPE are priced at a total expense ratio of 0.20%, ensuring that price does not need to factor into a decision around a client’s preference for investing in either of these two equal weight ETFs.
“S&P Dow Jones Indices has been a pioneer in ESG, providing benchmarks for investors seeking to align their investment goals with their individual values for over 20 years,” said Margaret Dorn, Senior Director, Head of ESG Indices, North America, S&P Dow Jones Indices. “The launch of the S&P 500 Equal Weight ESG Leaders Select Index reflects the continued evolution of ESG investing by combining a smart beta factor into an ESG benchmark. We are excited to license this Index to Invesco to expand the opportunities of equal weight into the ESG environment.”
The S&P Equal Weight ESG Leaders Select Index measures the performance of securities from the S&P 500 Equal Weight Index and targets 40% of the number of constituents of each Global Industry Classification Standard (GICS®) Industry Group, using an S&P DJI ESG score as the defining characteristic. The index also applies exclusions based on companies’ involvement in specific business activities, performance against the principles of United Nations’ Global Compact (UNGC), and involvement in relevant ESG controversies. The S&P Equal Weight ESG Leaders Select Index is rebalanced annually and reweighted on a quarterly basis.
RSP Standardized Performance as of Sept. 30, 2021
|1 Year||5 Year||10 Years||Since Inception (4/24/2003)|
|RSP – Invesco S&P 500® Equal Weight ETF (NAV)||48.99%||16.13%||14.82%||12.07%|
|RSP – Invesco S&P 500® Equal Weight ETF (Market Price)||49.20%||16.13%||14.81%||12.07%|
|S&P 500 Equal Weight Index||49.27%||16.37%||15.18%||12.55%|
|S&P 500 Index||42.91%||18.93%||16.21%||11.35%|
Click here for Standardized performance. Past performance is not a guarantee of future results; current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. See invesco.com to find the most recent month-end performance numbers. Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times. As the result of a reorganization on April 6, 2018, the returns presented reflect performance of the Guggenheim predecessor fund. Fund performance reflects fee waivers, absent which performance data quoted would have been lower. An investment cannot be made directly into an index. Index returns do not represent fund returns.
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.
About S&P Dow Jones Indices
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.
S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit www.spglobal.com/spdji/.
1 Beta is a measure of risk representing how a security is expected to respond to general market movements. Smart Beta represents an alternative and selection index-based methodology that seeks to outperform a benchmark or reduce portfolio risk, both in active or passive vehicles. Smart beta funds may underperform cap-weighted benchmarks and increase portfolio risk.
2 Based on AUM, per Bloomberg L.P, as of November 1, 2021
3 Diversification does not guarantee a profit or eliminate the risk of loss.
4 Since ordinary brokerage commissions apply for each buy and sell transaction, frequent trading activity may increase the cost of ETFs.
5 Invesco does not offer tax advice. Please consult your tax professional for information regarding your own personal tax situation
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Underlying Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.
Investments focused in a particular industry or sector are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
Stocks of medium-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale.
Stocks of companies with favorable ESG attributes may underperform the market as a whole. As a result, the Fund may underperform other funds that do not screen companies based on ESG attributes. The criteria used to select companies for investment may result in the Fund investing in securities, industries or sectors that underperform the market as a whole or underperform other funds screened for ESG standards.
The Fund is non-diversified and may experience greater volatility than a more diversified investment.
The S&P 500® Equal Weight Index (EWI) is the equal-weight version of the widely-used S&P 500. The index includes the same constituents as the capitalization weighted S&P 500, but each company in the S&P 500 EWI is allocated a fixed weight – or 0.2% of the index total at each quarterly rebalance. An investment cannot be made directly into an index.
The S&P Equal Weight ESG Leaders Select Index® is designed to measure the equal-weighted performance of securities from the S&P 500 Equal Weight Index that meet sustainability criteria, while maintaining similar overall industry group weights as the S&P 500 Equal Weight Index.
The S&P 500® Index, the S&P 500 Equal Weight Index, and the S&P 500 Equal Weight ESG Leaders Select Index (the “S&P Indices”) are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and have been licensed for use by Invesco Ltd. S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Invesco Ltd. The Invesco S&P Equal Weight ETF and the Invesco ESG S&P 500 Equal Weight ETF are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product nor do they have any liability for any errors, omissions, or interruptions of the S&P Indices.
Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the Fund call 800 983 0903 or visit invesco.com for the prospectus/summary prospectus.
Invesco Distributors, Inc. is not affiliated with S&P Dow Jones Indices.
Invesco Distributors, Inc. is the US distributor for Invesco’s retail products, and is an indirect, wholly owned subsidiary of Invesco Ltd.
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SOURCE Invesco Ltd.