A new version of one of the world’s biggest exchange-traded funds will manage holdings adhering to environmental, social, and governance criteria. One feature will be lower weights for some technology titans including Tesla, Facebook, and Amazon.
The $200bn QQQ ETF, which tracks the Nasdaq-100 stock index, is the second most actively traded exchange-traded fund. On Wednesday the fund manager Invesco launched ESG versions for investors in the US and Europe, based on a new form of the index created by Nasdaq in June.
Some of the new weightings may come as a surprise, as many tech groups typically score high on ESG measures. Yet the likes of Amazon, Google, Tesla, and Facebook have lower ESG-weighted rankings than their current Nasdaq-100 weights based on market capitalization.
This article was originally posted on ft.com