Global asset manager Invesco today announced the launch of Invesco ESG NASDAQ 100 ETF (QQMG) and Invesco ESG NASDAQ Next Gen 100 ETF (QQJG), adding two new ESG funds to its QQQ Innovation Suite of funds.
Invesco introduced the QQQ Innovation Suite in October 2020, in partnership with Nasdaq, aiming to provide investors with access to innovative companies through exposure to the Nasdaq-100 and Nasdaq Next Generation 100 indices. To date, the first two funds in the series, QQQM and QQQJ, have gathered $3.4 billion in AUM.
The new ETFs add ESG exposure for investors, with the QQMG and QQJG tracking the performance of the Nasdaq-100 ESG Index and the Nasdaq Next Generation 100 ESG Index, respectively. The indices filter constituent companies of the parent benchmarks using ESG criteria utilizing ESG data from Sustainalytics, and adjust constituent weightings based on how effectively the companies are managing ESG risk. The indices remove companies with business activities such as controversial weapons or tobacco, and removes companies with poor controversy scores or those above 40 on the Sustainalytics scoring system.
Anna Paglia, Global Head of ETFs & Indexed Strategies, Invesco, said:
“Invesco has been fortunate to work in lockstep with Nasdaq for almost two decades, finding beneficial ways to offer investors all over the globe access to Nasdaq-listed companies. Today’s launch will mark our continued collaboration. We are confident that the new Invesco QQMG and QQJG ETFs will bridge innovation and ESG to offer every type of investor a unique way to help meet their desired investment outcomes.”
Lauren Dillard, Executive Vice President and Head of Investment Intelligence, Nasdaq, added:
“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. 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 investment goals.”