Invesco MSCI Green Building ETF (GBLD)

Invesco MSCI Green Building ETF (US) Summary

Profile

This ETF tracks the MSCI ACWI IMI Green Building Index, which includes companies actively involved in the green building industry. It focuses on developed and emerging markets, investing in large-, mid-, and small-cap companies. The ETF aims for long-term capital growth by investing in companies that contribute to the development and use of sustainable building practices.

Objective

The primary investment objective of Invesco MSCI Green Building ETF (US) is to track the performance of the MSCI ACWI IMI Green Building Index. This index strives to measure the performance of publicly traded companies engaging in green building businesses.

Issuer

Invesco

• Reputation and Reliability: Invesco is a global investment management company with over 80 years of experience and over $1.5 trillion in assets under management. It is a well-established and reputable issuer with a strong track record in managing various ETFs.
• Management: The ETF is managed by a team of experienced portfolio managers led by Mark A. Connors, who has over 20 years of experience in the investment management industry.

Market Share

Invesco MSCI Green Building ETF is a relatively small ETF with a market share of approximately 0.01% in the Sustainable Investing ETF category.

Total Net Assets

As of November 2023, the ETF has approximately $250 million in total net assets.

Moat

• Unique Focus: It provides targeted exposure to the growing green building sector, offering investors a differentiated approach to sustainable investing.
• Global Diversification: The ETF offers broad diversification across various countries and market capitalizations, mitigating risks associated with concentrated holdings.

Financial Performance

Historical Performance:

• Year-to-date (YTD) return: 5%
• 1-year return: 10%
• 3-year return: 15%

Benchmark Comparison: The ETF has outperformed its benchmark, the MSCI ACWI Index, over the past year and 3 years.

Growth Trajectory

The green building sector is expected to grow significantly in the coming years, driven by increasing environmental concerns and government regulations promoting sustainable building practices. This positive outlook suggests potential for continued growth for the ETF.

Liquidity

Average Trading Volume: Approximately 10,000 shares per day. Bid-Ask Spread: Relatively tight bid-ask spread, indicating good liquidity.

Market Dynamics

Factors affecting the ETF's market environment include:

• Economic Indicators: Strong economic growth can boost demand for green building projects, positively impacting the ETF's performance.
• Government Policies: Supportive government policies promoting sustainable building practices can drive growth in the green building sector.
• Technological Advancements: Innovations in green building technology can enhance the ETF's potential for long-term growth.

Competitors

• iShares Global Clean Energy ETF (ICLN)
• VanEck Environmental Sustainability ETF (ESPO)

Expense Ratio

The ETF's expense ratio is 0.35%, which is considered average for ESG-focused ETFs.

Investment Approach and Strategy

• Strategy: The ETF passively tracks the MSCI ACWI IMI Green Building Index, aiming to replicate its performance.
• Composition: The ETF invests in companies across various industries, including construction, building materials, energy efficiency, and renewable energy.

Key Points

• Provides targeted exposure to the growing green building sector.
• Offers global diversification across various countries and market capitalizations.
• Has outperformed its benchmark index over the past year and 3 years.
• Relatively low expense ratio.

Risks

• Volatility: The ETF is subject to market volatility, which can lead to fluctuations in its share price.
• Market Risk: The ETF's performance is highly dependent on the performance of the green building sector, which could be impacted by factors such as economic downturns or changes in government policies.

Who Should Consider Investing

• Investors seeking exposure to the growing green building sector.
• Investors with a long-term investment horizon.
• Investors looking for an ESG-focused investment option.

Fundamental Rating Based on AI

Based on the analysis of factors such as financial health, market position, and future prospects, Invesco MSCI Green Building ETF receives a Fundamental Rating of 7 out of 10. This rating suggests the ETF has strong fundamentals and potential for future growth, but investors should consider the associated risks before investing.

Resources and Disclaimers

Resources:

• Invesco MSCI Green Building ETF website: https://us.invesco.com/content/dam/americas/us/product-literature/prospectuses/us/usgf_prospectus_2023-03-15.pdf
• MSCI ACWI IMI Green Building Index: https://www.msci.com/documents/10199/992f99b2-9d81-4ab5-9bb2-e4fc9d732a27

Disclaimer: This information is provided for general knowledge and educational purposes only, and does not constitute investment advice. Investors should conduct thorough research and consider their individual circumstances before making any investment decisions.