Today, Invesco launched a first-of-its-kind ETF that targets the “green building” space. The Invesco MSCI Green Building ETF (GBLD) tracks an index provided by MSCI and covers companies involved in the design, creation and acquisition of properties designed to assist in mitigation of and adaptation for climate change.
The fund comes with an expense ratio of 0.39% and lists on the NYSE Arca.
“The Invesco MSCI Green Building ETF will be the first to focus specifically on the entire green building ecosystem, continuing Invesco’s track record as an ETF industry pioneer,” said John Hoffman, Invesco’s head of Americas, ETFs and indexed strategies. “GBLD provides access to not just sustainable real estate, but companies involved in every stage of construction, redevelopment and retrofitting green-certified properties.”
Green buildings have a smaller environmental impact due to their lower levels of energy usage. Invesco notes in a press release that green buildings and related infrastructure are a growing part of real estate.
Companies are selected for the index from the MSCI ACWI Investable Market Index from across the size spectrum, and must generate at least half of their revenue from green building activities. The methodology also takes into account companies’ degree of involvement and strategic commitment to the space, in addition to its ESG scores, the prospectus says.
The prospectus notes that companies stay in the index as long as their revenue exposure to green building remains above 40%. The components are weighted by float-adjusted market capitalization. As of the end of February, the index included 68 securities.
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