Invesco’s new UCITS ETF will invest in firms focused on renewable energy sources such as hydroelectricity
Invesco has launched a new ETF that follows the WilderHill New Energy Global Innovation index to provide investors with exposure to the “transition to cleaner sources of energy”.
By following the WilderHill index, the Invesco Global Clean Energy UCITS ETF will invest in companies focused on wind, solar, biofuels, hydro and other renewable energy sources, as well as those involved in energy conversion, storage, conservation and efficiency, and will avoid companies with exposure to fossil fuels.
Invesco said the WilderHill New Energy Global Innovation index is an equally-weighted index which rebalances quarterly, an approach that reduces concentration risk compared to a market-cap-weighted index and “provides the ETF with meaningful exposure to the full breadth of opportunities in the diverse and constantly evolving clean energy space”.
Gary Buxton, head of EMEA ETFs and indexed strategies at Invesco, said that avoiding climate catastrophe is “the biggest and arguably most urgent challenge facing the world”.
“The solution hinges on our transition to cleaner sources of energy, which is a diverse and rapidly evolving space,” he said.
He said that California-based WilderHill constructed the first clean energy indices.
Buxton added that Invesco will continue bringing to market funds that enable investors to align their investments with their principles, with “much more to come in 2021”.
In January, Invesco unveiled its Summit Responsible Range – a range of five risk-targeted global multi-asset funds.
Co-founder of WilderHill Dr Rob Wilder said: “We have seen major fundamental changes to the clean energy space since solar and wind started breaking new ground in the noughties.
“First of all, the largest economies in the world are now committed to net-zero carbon objectives. Second, and even more significant, we now have economically viable alternatives to fossil fuels.”
The Invesco Global Clean Energy ETF has an OCF of 0.6%.