Investment management company and ETF provider Invesco announced today the launch of the Invesco S&P/TSX Composite ESG Index ETF (ESGC), the first Canadian-listed ETF to track the S&P/TSX Composite ESG Index. The new product aims to offers Canadian investors access to notable Canadian companies that have a thoughtful ESG tilt while still offering a risk/return profile similar to the benchmark Index. Today’s announcement was made in conjunction with the introduction of the new ESG index by S&P Dow Jones Indices (S&P DJI)
According toS&P DJI, the S&P/TSX Composite ESG Index is a broad-based, market-cap-weighted index that is designed to measure the performance of securities meeting sustainability criteria, while maintaining similar overall industry group weights as the S&P/TSX Composite. Index exclusions, based on specific thresholds, include thermal coal, tobacco, and controversial weapons, as well as low UNGC scores and low ESG ratings. Companies are selected in decreasing order in terms of ESG scores.
Jason McKay, Head of Wealth Management Intermediaries, Canada, said:
“Invesco has one of the longest track records in the ESG space, having launched clean tech ETFs in 2005. The newest launch of the Invesco S&P/TSX Composite ESG Index ETF will further expand our global ESG product suite with a Canadian focus, offering investors an ESG overlay on a key benchmark of the Canadian equity market.”
The launch of the new ETFs add to Invesco’s suite of ESG-themed products, including nine sustainability focused ETFs in the Americas, and eight ESG ETFs in EMEA. In July, Invesco Canada announced plans to reposition two bond ETFs with a new ESG focus.