Invesco Canada today announced the launch of Invesco ESG NASDAQ 100 Index ETF (QQCE) and Invesco ESG NASDAQ Next Gen 100 Index ETF (QQJE), providing Canadian investors to the ESG versions of the growth-focused benchmarks.
The Nasdaq 100 is a large-cap growth index, including 100 of the largest domestic and international non-financial companies listed on the Nasdaq Stock Market based on market capitalization. The Nasdaq Next Generation 100 targets the largest 100 securities outside of the Nasdaq 100.
The ESG versions of the indices filter constituent companies of the parent benchmarks using ESG criteria drawn from 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. According to Nasdaq, as of most recent quarterly reconstitution of the benchmarks, six companies in the Nasdaq-100 Index did not qualify for inclusion and 10 companies in the Nasdaq Next Gen 100 Index did not qualify for inclusion in their ESG counterparts.
Pat Chiefalo, Head of ETFs & Indexed Strategies Canada, Invesco, said:
“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. 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.”
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 their investment goals.”
Invesco launched US and EMEA versions of the ETFs last month.