Invesco Canada Ltd. has launched environmental, social and governance versions of two Nasdaq ETFs.
The Invesco ESG Nasdaq 100 Index ETF and the Invesco ESG Nasdaq Next Gen 100 Index ETF allow investors to access the same companies as the Invesco Nasdaq 100 Index ETF and the Invesco Nasdaq Next Gen 100 Index ETF “but with a tilt-towards ESG-related values,” the firm said in a Monday press release.
The Invesco ESG Nasdaq 100 ETF invests at least 90% of its total assets in securities that make up the Nasdaq-100 ESG Index. The fund’s management fee and total expense ratio are 0.20%.
The Invesco ESG Nasdaq Next Gen 100 Index ETF invests a minimum of 90% of its total assets in securities that make up the Nasdaq Next Generation 100 ESG Index, meaning the 101st to the 200th largest companies on the Nasdaq.
The fund’s management fee and total expense ratio is 0.15%.
To create the ESG indexes, Nasdaq used Sustainalytics’ ESG data to assign ESG risk scores to companies and then re-weighted those companies in the index based on that 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,” the release said.
The ETFs began trading Monday on the TSX.