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 capitalisation.