Surging real estate prices and the popularity of environmental, social, and governance (ESG) investing make a for a potent combination with the Invesco MSCI Green Building ETF (GBLD).
GLBD poses a unique investing opportunity as the global movement toward energy efficiency slowly permeates into the real estate industry. As such, growth opportunities exist for large- and mid-cap companies to incorporate green ideas into their business models, or for up-and-coming small cap growth firms developing new tech.
The fund seeks to track the investment results of the MSCI Global Green Building Index. The index is composed of securities that are also components of the MSCI ACWI Investable Market Index, an equity index composed of more than 8,700 securities of large-, mid-, and small-capitalization companies located in both developed and emerging market countries around the world.
“The Invesco MSCI Green Building ETF tracks an index of companies engaged on ‘green building,’ such as the design, construction, redevelopment, retrofitting or acquisition of properties that have been certified as meeting certain building standards for energy efficiency and resource sustainability,” an ETF Database analysis explained.
As mentioned, opportunities exist in companies of various market caps.
“The fund invests in small-, mid- and large-cap companies from around the world,” the analysis said further. “Those that derive 50% or more of their revenue from green building are included in the index. The index excludes companies that face severe controversies related to environmental, social and governance issues in the last three years, as well as companies involved in controversial weapons.”
Invesco’s Commitment to ESG
GBLD is just one of the many ETFs that highlight Invesco’s focus on ESG. Investors can also capitalize on these opportunities by selecting specific niches of the ESG market by selecting areas like solar energy, water resources, or, in GLBD’s case, green buildings, just to name a few.
“ESG matters a great deal to us, and we’ve long been at the forefront of the clean energy space, having launched the first clean energy ETF tracking the first clean energy index in 2005. We continue to innovate today, including the recently launched Invesco MSCI Green Building ETF (ticker: GBLD), which invests in companies constructing green buildings that are essential to the decarbonization of our planet,” the Invesco website explained. “Our full suite of ESG ETFs consists of ten unique strategies, and seven of them have at least a five-year performance track record – the most in the industry.”
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