New ETF Filed: Invesco Green Building ETF

Invesco MSCI Green Building ETF

Ticker: TBD

Exchange: NYSE Arca

Expense ratio: TBD

Original filing date: February 3, 2021

Effective date: April 19, 2021

Listing Date: TBD

CUSIP: TBD

Active: No

Index: MSCI Global Green Building Index

Investment Objective:

The Invesco MSCI Green Building ETF seeks to track the investment results (before fees and expenses) of the MSCI Global Green Building Index.

Investment Strategy:

Universe: MSCI ACWI Investable Market Index

Companies that derive 50% or more of their revenue from green buildings. Such companies are evaluated for their level of involvement in, and strategic commitment to green building, based on MSCI’s internal environmental, social and governance rating and score data. Once included in the index, securities will remain constituents as long as the revenue they derive from green building does not fall below 40%.

 

Adviser: Invesco CapitalManagement LLC

Prospectus is here.

MORE ETF HEARSAY

 

S000071549

Principal Investment Strategies

The Fund generally will invest at least 90% of its total assets in the securities that comprise the Underlying Index.

Strictly in accordance with its guidelines and mandated procedures, MSCI Inc. (the “Index Provider”) compiles, maintains and calculates the Underlying Index, which is comprised of companies that the index methodology has determined provide exposure to the environment impact theme of “green building”. The index methodology defines “green building” to include the design, construction, redevelopment, retrofitting, or acquisition of green-certified properties to promote mechanisms for raising capacity for effective climate change mitigation and adaptation.

The Underlying Index is composed of securities that are also components of the MSCI ACWI Investable Market Index (the “Parent Index”), an equity index composed of more than 8,700 securities of large-, mid- and small-capitalization companies located in both developed and emerging market countries around the world. Securities eligible for inclusion in the Underlying Index include American depositary receipts (“ADRs”), global depositary receipts (“GDRs”), and real estate investment trusts (“REITs”). Companies that derive 50% or more of their revenue from green building are eligible for inclusion in the Underlying Index. Such companies are evaluated for their level of involvement in, and strategic commitment to green building, based on the Index Provider’s internal environmental, social and governance (“ESG”) rating and score data. Once included in the Underlying Index, securities will remain constituents as long as the revenue they derive from green building does not fall below 40%. The Underlying Index weights its constituents by their free-float adjusted market capitalization.

As of [ ], the Underlying Index was comprised of [ ] constituents with market capitalizations ranging from $[ ] to $[ ].

The Fund employs a “full replication” methodology in seeking to track the Underlying Index, meaning that the Fund generally invests in all of the securities comprising the Underlying Index in proportion to their weightings in the Underlying Index. The Fund is “non-diversified” and therefore is not required to meet certain diversification requirements under the Investment Company Act of 1940, as amended (the “1940 Act”).

Concentration Policy. The Fund will concentrate its investments (i.e., invest 25% or more of the value of its total assets) in securities of issuers in any one industry or group of industries only to the extent that the Underlying Index reflects a concentration in that industry or group of industries. The Fund will not otherwise concentrate its investments in securities of issuers in any one industry or group of industries. As of [          ], the Fund had significant exposure to the real estate industry. The Fund's portfolio holdings, and the extent to which it concentrates its investments, are likely to change over time.