Invesco is launching a multi-factor ETF that incorporates strict environmental, social and corporate governance (ESG) criteria.

The fund will be actively managed by the Invesco Quantitative Strategies team which, the firm says, will select a portfolio of global equities that offers optimised exposure to quality, value and momentum risk factors while also meeting high ESG standards.

Gary Buxton, head of EMEA ETFs at Invesco, said: “Three of the biggest trends we have seen over the past decade are growing demand for multi-factor strategies, ESG investments and ETFs more generally.

“Proven expertise in all these areas has enabled us to respond to investor demand by delivering a multi-factor solution that adheres to strict ESG criteria and has all the benefits you would expect from our ETF structure.” 
 
Manuela von Ditfurth, IQS senior portfolio manager at Invesco, said: “We believe this strategy could appeal to ESG-focused investors who want to capture the potential benefits of an increased exposure to factors and are not tightly constrained to traditional benchmarks.

“We use a proprietary risk model to manage the sector, country, currency and stock-specific exposures with a view to retain only those risks for which we believe the investor should be rewarded.”