Invesco ESG ETFs

Investing in ESG with Invesco ETFs

Build sustainable portfolios with precision and confidence

Recent years have seen ETFs become a key component of Environmental, Social and Governance (ESG) portfolios. By blending innovation with thoughtfulness, we’ve designed our wide range of ESG ETFs to empower investors to choose their own journey through sustainable investing.

Whether your clients simply want to avoid certain companies or industries, or help drive positive change, our wide range of ESG ETFs can help you build portfolios that reflect values that matter to your clients.

Notes

  • An investment in this fund is an acquisition of units in a passively managed, index tracking fund rather than in the underlying assets owned by the fund. Costs may increase or decrease as result of currency and exchange rate fluctuations. Consult the legal documents for further information on costs. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested.

    The Funds intend to invest in securities of issuers that manage their ESG exposures better relative to their peers. This may affect the Funds' exposure to certain issuers and cause the Funds to forego certain investment opportunities. The Funds may perform differently to other funds, including underperforming other funds that do not seek to invest in securities of issuers based on their ESG ratings.

    Article 8 and 9 SFDR ETF: Any investment decision should take into account all the characteristics of the fund as described in the legal documents. For sustainability related aspects, please refer to www.invescomanagementcompany.ie/dub-manco.

    Article 6 SFDR ETF: Whilst the fund manager considers ESG aspects they are not bound by any specific ESG criteria and have the flexibility to invest across the ESG spectrum from best to worst in class. The ESG information is for illustrative purposes only. Providing this information is not indicative of how or whether ESG factors will be integrated into a fund. Unless otherwise stated in the legal offering documents ESG integration does not change a Fund’s investment objective or constrain the Fund’s investable universe.

    Read the risks of investing in the ETFs/products mentioned at the end of this ESG ETFs webpage in the section Investment risks.

Choose your ESG journey

ESG isn't a 'one size fits all' solution. No two investors' wants and needs are exactly the same. Let us help you navigate your ESG journey to finding an ETF that aligns with your values.

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Spotlight on: Thematic ETFs

We’re living in an age of disruption, where everything appears to change at lightning speed. Technology is transforming or lives and redefining entire industries. Meanwhile, climate change, declining birth rates, and an aging population are due to reshape society.

These are just some of the ‘megatrends’ at work in the world today with the power to reframe the way we live, what governments prioritize and how businesses operate and succeed.

We offer a broad set of ETFs that seek to capture the opportunities to be found in some of these disruptive themes.

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Why consider Invesco for ESG ETFs?

Our ESG approach is centred around client needs. Most investors choose ESG ETFs for the same reasons they choose any other ETF: simplicity, low costs, transparency, tradability and often for the efficient way it tracks a reference index.

With all of our ESG ETFs designed to meet specific objectives, we provide our clients with complete clarity on their goals and precisely how they aim to deliver that outcome.

FAQs

Most investors choose ESG ETFs for the same reasons they choose any other ETF: simplicity, low costs, transparency, tradability and often for the efficient way it tracks a reference index. Their growing popularity can be seen in recent flows, as ESG ETFs gathered 50% of all net new assets in the European ETF market in 2021. With each Invesco ESG ETF designed to meet specific objectives, you have complete clarity on the goals and precisely how it will deliver that outcome. 

This has been an area of increased focus, with some studies suggesting a positive relationship betweeen a company’s financial and ESG performances. Moreover, some ESG indices have recently outperformed their parent (non-ESG) indices, which is partly due to the sector biases that occur naturally from exclusions, e.g. reduced weighting in energy, but could also be attributed to investors’ placing a “premium” on companies that are successfully managing ESG risks.

 

Whether or not ESG on its own can drive performance, investors can now find ETFs that have both ESG and financial objectives. You can choose between ESG ETFs that aim for similar returns as the parent index (with meaningful ESG improvement) or that have a greater tolerance for tracking error (with much more ESG improvement).   

With environment one of the three ESG pillars, most ESG ETFs will include climate considerations either implicitly or explicitly in the index methodology. Some of our Invesco ESG ETFs go a step further by having specific climate-related goals, such as the Paris-aligned benchmark, reducing overall carbon intensity and/or increasing the amount of green revenues in the portfolio. We also offer thematic ETFs for focused exposure to climate solutions such as clean energy and solar power. 

The simple answer is that any ETF that physically holds shares in a company can exercise its rights. All but one of our ESG ETFs replicate their indices by physically holding the shares. Our passive equity ETFs will vote in line with the largest active position held by Invesco, or with our ESG guidelines if no active position is held. Our global ESG team and investment managers engage with companies on key ESG issues, which includes many of those held by our passive ESG ETFs. 

We’ve been helping investors incorporate their ESG objectives for the past 35 years and aim to include ESG considerations across all our investment strategies where possible. We believe engagement is one of the most effective mechanisms to reduce risks, maximise returns and have a positive impact on society and the environment. We are also committed to being a good corporate citizen and are signatories to key industry initiatives especially in the fight against climate change.

As ESG continues to grow globally, different regions have made efforts to introduce regulatory standards. Regulation will be a key factor in ensuring that efforts to integrate ESG have a tangible impact. It’ll also help to drive the standardisation of measuring and reporting.

The EU has introduced green taxonomy, Sustainable Finance Disclosure Regulation (SFDR) and most recently, the Sustainable Finance Strategy to provide rules and structure to the way businesses report on their ESG activities.

Greenwashing is when companies portray a public image of sustainability but aren’t taking sufficient or tangible action behind the scenes or undertake other questionable business activities. It could be a global drinks company committing to using 100% recycled plastic but setting no actual target, or a fast fashion brand using sustainable materials but with questionable manufacturing processes. 

In the investment industry, it could be excluding obvious companies like tobacco manufacturers from a portfolio but not applying ESG analysis to the rest of it. Greater regulation and efforts to standardise measuring and reporting should help reduce the effects of greenwashing, as well as wider education. 

Investment risks

  • For complete information on risks, refer to the legal documents.

    The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested.

    Invesco GBP Corporate Bond ESG UCITS ETF: The creditworthiness of the debt the Fund is exposed to may weaken and result in fluctuations in the value of the Fund. There is no guarantee the issuers of debt will repay the interest and capital on the redemption date. The risk is higher when the Fund is exposed to high yield debt securities. Changes in interest rates will result in fluctuations in the value of the fund. The Fund intends to invest in securities of issuers that manage their ESG exposures better relative to their peers. This may affect the Fund’s exposure to certain issuers and cause the Fund to forego certain investment opportunities. The Fund may perform differently to other funds, including underperforming other funds that do not seek to invest in securities of issuers based on their ESG ratings. The Fund might be concentrated in a specific region or sector or be exposed to a limited number of positions, which might result in greater fluctuations in the value of the Fund than for a fund that is more diversified.

    Invesco Global High Yield Corporate Bond ESG UCITS ETF: The creditworthiness of the debt the Fund is exposed to may weaken and result in fluctuations in the value of the Fund. There is no guarantee the issuers of debt will repay the interest and capital on the redemption date. The risk is higher when the Fund is exposed to high yield debt securities. Changes in interest rates will result in fluctuations in the value of the fund. This fund may hold a significant amount of debt instruments which are of lower credit quality. This may result in large fluctuations of the value of the ETF as well as impacting its liquidity under certain circumstances. The Fund intends to invest in securities of issuers that manage their ESG exposures better relative to their peers. This may affect the Fund’s exposure to certain issuers and cause the Fund to forego certain investment opportunities. The Fund may perform differently to other funds, including underperforming other funds that do not seek to invest in securities of issuers based on their ESG ratings. Currency hedging between the base currency of the Fund and the currency of the share class may not completely eliminate the currency risk between those two currencies and may affect the performance of the share class. It may be difficult for the Fund to buy or sell certain instruments in stressed market conditions. Consequently, the price obtained when selling such instruments may be lower than under normal market conditions.

    Invesco Nasdaq-100 ESG UCITS ETF: Single country: As this fund invests in companies from a single country, investors should be prepared to accept a higher degree of risk than an ETF that is geographically diversified. The Fund intends to invest in securities of issuers that manage their ESG exposures better relative to their peers. This may affect the Fund’s exposure to certain issuers and cause the Fund to forego certain investment opportunities. The Fund may perform differently to other funds, including underperforming other funds that do not seek to invest in securities of issuers based on their ESG ratings.

    Invesco FTSE All Share ESG Climate UCITS ETF: The fund invests in securities based on their ESG exposures. This may affect the Fund’s exposure, limit investment opportunities, and cause the fund to underperform funds not seeking investments based on ESG ratings. The Fund might be concentrated in a specific region, sector or a limited number of positions, causing greater value fluctuations than for a more diversified fund. The value of equities can be affected by certain factors such as issuer’s circumstances or economic and market conditions. This may result in value fluctuations.

    Invesco MSCI Emerging Markets ESG Climate Paris Aligned UCITS ETF: As a large portion of this fund is invested in less developed countries, investors should be prepared to accept a higher degree of risk than for an ETF that invests only in developed markets. The Fund intends to invest in securities of issuers that manage their ESG exposures better relative to their peers. This may affect the Fund’s exposure to certain issuers and cause the Fund to forego certain investment opportunities. The Fund may perform differently to other funds, including underperforming other funds that do not seek to invest in securities of issuers based on their ESG ratings. The value of equities and equity-related securities can be affected by a number of factors including the activities and results of the issuer and general and regional economic and market conditions. This may result in fluctuations in the value of the Fund. The Fund’s performance may be adversely affected by variations in the exchange rates between the base currency of the Fund and the currencies to which the Fund is exposed. The Fund may use Stock Connect to access China A Shares traded in Mainland China. This may result in additional liquidity risk and operational risks including settlement and default risks, regulatory risk and system failure risk. The use of a representative sampling approach will result in the Fund holding a smaller number of securities than are in the underlying index. As a result, an adverse development to an issuer of securities that the Fund holds could result in a greater decline in NAV than would be the case if the Fund held all of the securities in the underlying index. It may be difficult for the Fund to buy or sell certain instruments in stressed market conditions. Consequently, the price obtained when selling such instruments may be lower than under normal market conditions.

    Invesco MSCI Europe ESG Climate Paris Aligned UCITS ETF, Invesco MSCI World ESG Climate Paris Aligned UCITS ETF: The Fund intends to invest in securities of issuers that manage their ESG exposures better relative to their peers. This may affect the Fund’s exposure to certain issuers and cause the Fund to forego certain investment opportunities. The Fund may perform differently to other funds, including underperforming other funds that do not seek to invest in securities of issuers based on their ESG ratings. The value of equities and equity-related securities can be affected by a number of factors including the activities and results of the issuer and general and regional economic and market conditions. This may result in fluctuations in the value of the Fund. The Fund’s performance may be adversely affected by variations in the exchange rates between the base currency of the Fund and the currencies to which the Fund is exposed.

    Invesco MSCI USA ESG Climate Paris Aligned UCITS ETF: The Fund intends to invest in securities of issuers that manage their ESG exposures better relative to their peers. This may affect the Fund’s exposure to certain issuers and cause the Fund to forego certain investment opportunities. The Fund may perform differently to other funds, including underperforming other funds that do not seek to invest in securities of issuers based on their ESG ratings. The value of equities and equity-related securities can be affected by a number of factors including the activities and results of the issuer and general and regional economic and market conditions. This may result in fluctuations in the value of the Fund. The Fund is invested in a particular geographical region, which might result in greater fluctuations in the value of the Fund than for a fund with a broader geographical investment mandate.

    Invesco Global Clean Energy UCITS ETF: As this fund invests primarily in small-sized companies, investors should be prepared to accept a higher degree of risk than for an ETF with a broader investment mandate. The value of equities can be affected by certain factors such as issuer’s circumstances or economic and market conditions. This may result in value fluctuations. Investments into the clean energy sector are considerably exposed to investment trends focused on environmental factors and may have sensitivities towards ESG related government regulations and tax implications.

    Invesco Solar Energy UCITS ETF: As a large portion of this fund is invested in less developed countries, investors should be prepared to accept a higher degree of risk than for an ETF that invests only in developed markets. As this fund has significant exposure to one or a small number of sectors, investors should be prepared to accept a higher degree of risk than for an ETF with a broader investment mandate. The value of equities can be affected by certain factors such as issuer’s circumstances or economic and market conditions. This may result in value fluctuations. Investments into the clean energy sector are considerably exposed to investment trends focused on environmental factors and may have sensitivities towards ESG related government regulations and tax implications. The Fund might be exposed to a limited number of positions which might result in greater fluctuations in the value of the Fund than for a fund that is more diversified.

    Invesco Wind Energy UCITS ETF, Invesco Hydrogen Economy UCITS ETF: As a large portion of this fund is invested in less developed countries, investors should be prepared to accept a higher degree of risk than for an ETF that invests only in developed markets. As this fund invests primarily in small-sized companies, investors should be prepared to accept a higher degree of risk than for an ETF with a broader investment mandate. The value of equities and equity-related securities can be affected by a number of factors including the activities and results of the issuer and general and regional economic and market conditions. This may result in fluctuations in the value of the Fund. The Fund may use Stock Connect to access China A Shares traded in Mainland China. This may result in additional liquidity risk and operational risks including settlement and default risks, regulatory risk and system failure risk. Investments into the clean energy sector are considerably exposed to investment trends focused on environmental factors and may have sensitivities towards ESG related government regulations and tax implications.

    Invesco Quantitative Strategies ESG Global Equity Multi-Factor UCITS ETF: The Fund intends to invest in securities of issuers that manage their ESG exposures better relative to their peers. This may affect the Fund’s exposure to certain issuers and cause the Fund to forego certain investment opportunities. The Fund may perform differently to other funds, including underperforming other funds that do not seek to invest in securities of issuers based on their ESG ratings. The Fund might be concentrated in a specific region or sector or be exposed to a limited number of positions, which might result in greater fluctuations in the value of the Fund than for a fund that is more diversified. The value of equities and equity-related securities can be affected by a number of factors including the activities and results of the issuer and general and regional economic and market conditions. This may result in fluctuations in the value of the Fund. Currency hedging between the base currency of the Fund and the currency of the share class may not completely eliminate the currency risk between those two currencies and may affect the performance of the share class. The Fund’s performance may be adversely affected by variations in the exchange rates between the base currency of the Fund and the currencies to which the Fund is exposed.

    Invesco Quantitative Strategies Global Equity Low Volatility Low Carbon UCITS ETF: The Fund intends to invest in securities of issuers that manage their ESG exposures better relative to their peers. This may affect the Fund’s exposure to certain issuers and cause the Fund to forego certain investment opportunities. The Fund may perform differently to other funds, including underperforming other funds that do not seek to invest in securities of issuers based on their ESG ratings. The value of equities and equity-related securities can be affected by a number of factors including the activities and results of the issuer and general and regional economic and market conditions. This may result in fluctuations in the value of the Fund. Currency hedging between the base currency of the Fund and the currency of the share class may not completely eliminate the currency risk between those two currencies and may affect the performance of the share class. The Fund’s performance may be adversely affected by variations in the exchange rates between the base currency of the Fund and the currencies to which the Fund is exposed.

Important information

  • This marketing communication is exclusively for use by professional investors in Portugal. It is not intended for and should not be distributed to the public. Investors should read the legal documents prior to investing.

    Data as at 01 February 2024, unless otherwise stated.

    By accepting this material, you consent to communicate with us in English, unless you inform us otherwise.

    This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.

    Views and opinions are based on current market conditions and are subject to change.

    For more information on our funds and the relevant risks, please refer to the share class-specific Key Information Documents/Key Investor Information Documents (available in local language), the financial statements and the Prospectus, available from invesco.eu. A summary of investor rights is available in English from invescomanagementcompany.ie. The management company may terminate marketing arrangements.

    UCITS ETF’s units / shares purchased on the secondary market cannot usually be sold directly back to UCITS ETF. Investors must buy and sell units / shares on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units / shares and may receive less than the current net asset value when selling them.

    Invesco GBP Corporate Bond ESG UCITS ETF: “Bloomberg®” and the Bloomberg MSCI Sterling Liquid Corporate ESG Weighted Bond Index are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited (“BISL”), the administrator of the index (collectively, “Bloomberg”) and have been licensed for use for certain purposes by Invesco. Bloomberg is not affiliated with Invesco, and Bloomberg does not approve, endorse, review, or recommend the Invesco GBP Corporate Bond ESG UCITS ETF. Bloomberg does not guarantee the timeliness, accurateness, or completeness of any data or information relating to the Invesco GBP Corporate Bond ESG UCITS ETF.

    Invesco Global High Yield Corporate Bond ESG UCITS ETF: BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. MSCI is a trademark and service mark of MSCI Inc. (collectively with its affiliates, “MSCI”), used under license. Bloomberg Finance L.P. and its affiliates (collectively, “Bloomberg”), including Bloomberg Index Services Limited, the index administrator (“BISL”), or Bloomberg’s licensors, including MSCI, own all proprietary rights in the Bloomberg MSCI Global High Yield Liquid Corporate ESG Weighted SRI Bond Index. Neither Bloomberg nor MSCI is affiliated with Invesco, and neither Bloomberg nor MSCI approves, endorses, reviews or recommends the Invesco Global High Yield Corporate Bond ESG UCITS ETF. Neither Bloomberg nor MSCI guarantees the timeliness, accurateness or completeness of any data or information relating to Bloomberg MSCI Global High Yield Liquid Corporate ESG Weighted SRI Bond Index, and none shall be liable in any way to Invesco, investors in the Invesco Global High Yield Corporate Bond ESG UCITS ETF or other third parties in respect of the use or accuracy of the Bloomberg MSCI Global High Yield Liquid Corporate ESG Weighted SRI Bond Index or any data included therein.

    Invesco MSCI Emerging Markets ESG Climate Paris Aligned UCITS ETF, Invesco MSCI Europe ESG Climate Paris Aligned UCITS ETF, Invesco MSCI USA ESG Climate Paris Aligned UCITS ETF, Invesco MSCI World ESG Climate Paris Aligned UCITS ETF: The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI Inc. ("MSCI"), and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with Invesco and any related funds.

    Invesco Wind Energy UCITS ETF: THE WILDERHILL WIND ENERGY INDEX IS SPONSORED BY WILDERHILL NEW ENERGY FINANCE, LLC ("WILDERHILL") AND IS CALCULATED AND PUBLISHED BY SOLACTIVE AG. NEITHER INVESCO NOR THE INVESCO WIND ENERGY UCITS ETF, BASED ON THE WILDERHILL  WIND ENERGY INDEX ARE SPONSORED, ENDORSED, SOLD OR PROMOTED BY WILDERHILL OR SOLACTIVE AG, AND WILDERHILL AND SOLACTIVE AG MAKE NO REPRESENTATION REGARDING THE ADVISABILITY OF INVESTING IN THE PRODUCT.

    Invesco Hydrogen Economy UCITS ETF: THE WILDERHILL HYDROGEN ECONOMY INDEX IS SPONSORED BY WILDERHILL NEW ENERGY FINANCE, LLC ("WILDERHILL") AND IS CALCULATED AND PUBLISHED BY SOLACTIVE AG. NEITHER INVESCO NOR THE INVESCO HYDROGEN ECONOMY UCITS ETF, BASED ON THE WILDERHILL  HYDROGEN ECONOMY INDEX ARE SPONSORED, ENDORSED, SOLD OR PROMOTED BY WILDERHILL OR SOLACTIVE AG, AND WILDERHILL AND SOLACTIVE AG MAKE NO REPRESENTATION REGARDING THE ADVISABILITY OF INVESTING IN THE PRODUCT.

    Invesco Global Clean Energy UCITS ETF: THE WILDERHILL NEW ENERGY GLOBAL INNOVATION INDEX IS SPONSORED BY WILDERHILL NEW ENERGY FINANCE, LLC ("WILDERHILL") AND IS CALCULATED AND PUBLISHED BY SOLACTIVE AG. NEITHER INVESCO NOR THE INVESCO GLOBAL CLEAN ENERGY UCITS ETF, BASED ON THE WILDERHILL NEW ENERGY GLOBAL INNOVATION INDEX ARE SPONSORED, ENDORSED, SOLD OR PROMOTED BY WILDERHILL OR SOLACTIVE AG, AND WILDERHILL AND SOLACTIVE AG MAKE NO REPRESENTATION REGARDING THE ADVISABILITY OF INVESTING IN THE PRODUCT.

    Invesco Solar Energy UCITS ETF: The MAC Global Solar Energy Index (the “Index”) is the property of MAC Indexing, LLC.  MAC Indexing LLC will not be liable for any errors or omissions in administering, calculating, or maintaining the Index.  MAC INDEXING and MAC GLOBAL SOLAR ENERGY INDEX are trademarks of MAC Indexing, LLC.  The Invesco Solar Energy UCITS ETF based on the Index is not sponsored, endorsed, sold or promoted by MAC Indexing, LLC.  MAC Indexing, LLC does not make any representation or warranty, express or implied, to the owners of the Invesco Solar Energy UCITS ETF, or any member of the public, regarding the advisability of investing in securities generally or in the Invesco Solar Energy UCITS ETF particularly or the ability of the Index to track general market performance.  MAC Indexing LLC’s only relationship to the owner of the Invesco Solar Energy UCITS ETF is the licensing of the MAC Global Solar Energy Index.  MAC Indexing LLC is not responsible for and has not participated in the determination of the prices and amount of the Invesco Solar Energy UCITS ETF or the timing of the issuance or sale of the Invesco Solar Energy UCITS ETF or in the determination or calculation of the equation by which the Invesco Solar Energy UCITS ETF may converted into cash or other redemption mechanics.  MAC Indexing, LLC has no obligation or liability in connection with the administration, marketing or trading of the Invesco Solar Energy UCITS ETF.  MAC Indexing, LLC is not an investment advisor.  Inclusion of a security within the Index is not a recommendation by MAC Indexing, LLC to buy, sell, or hold such security, nor is it investment advice. MAC Indexing, LLC does not guarantee the adequacy, accuracy, timeliness and/or the completeness of the index or any data related thereto or any communication with respect thereto, including, oral, written, or electronic communications. MAC Indexing, LLC shall not be subject to any damages or liability for any errors, omissions, or delays therein. MAC Indexing, LLC makes no express or implied warranties, and expressly disclaims all warranties, of merchantability or fitness for a particular purpose or use or as to results to be obtained by owners of any products based on the index, or any other person or entity from the use of the index or with respect to any data related thereto. Without limiting any of the foregoing, in no event whatsoever shall MAC Indexing, LLC be liable for any indirect, special, incidental, punitive, or consequential damages, including but not limited to, loss of profits, trading losses, lost time, or goodwill, even if they have been advised of the possibility of such damages, whether in contract, tort, strict liability, or otherwise.

    Invesco Quantitative Strategies ESG Global Equity Multi-Factor UCITS ETF: The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI Inc (“MSCI”), and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based.

    For the full objectives and investment policy please consult the current prospectus.

    Invesco Investment Management Limited, Ground Floor, 2 Cumberland Place, Fenian Street, Dublin 2, Ireland. Regulated by the Central Bank in Ireland.

    EMEA3365302/2024