Invesco has launched a new actively managed fixed income ETF providing exposure to European government debt while factoring in ESG criteria and maximizing exposure to green bonds.
The ETF delivers climate-tailored exposure to the EUR sovereign bond market.
The Invesco EUR Government and Related Green Transition UCITS ETF (EVGA GY) has been listed on Deutsche Börse Xetra in euros.
The fund invests in euro-denominated bonds predominantly issued by government and government-related issuers with investment-grade credit ratings.
Eligible issuers generally include those from developed markets globally, while a maximum of 10% of the ETF’s assets may be allocated to bonds from emerging market issuers that are part of the European Economic Area (EEA).
The fund may invest up to 30% of its assets in bonds denominated in currencies other than the euro and up to 30% of its assets in issuers outside of the EEA.
Securities are selected and weighted in the portfolio based on three criteria: compliance with ESG policies, maximizing exposure to green bonds subject to exposure and liquidity considerations, and the overall ability of the portfolio to meet certain ex-ante tracking error targets relative to the benchmark Bloomberg Euro Aggregate Treasury Index.
The ETF comes with an expense ratio of 0.15% and is classified as an Article 8 product under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).