The Invesco Global Equity Net Zero ETF (IQSZ) seeks to track an index of global companies committed to achieving net-zero carbon emissions by 2050. This international equity ETF focuses on firms with credible decarbonization plans and targets, providing exposure to climate-conscious companies across developed and emerging markets worldwide.
How It Works
IQSZ uses a rules-based screening methodology that selects companies based on their net-zero emission commitments, transition plans, and progress toward carbon neutrality targets. The fund employs market-capitalization weighting among qualifying companies and rebalances quarterly to maintain alignment with evolving climate commitments. Holdings span multiple sectors and geographies, emphasizing firms with science-based targets and transparent reporting on their decarbonization efforts.
Key Features
- First ETF specifically targeting companies with verified net-zero carbon emission commitments by 2050, addressing growing ESG investor demand
- Global diversification across developed and emerging markets while maintaining climate-focused investment criteria and sustainability screening
- Recently launched with 0.00% expense ratio during promotional period, though permanent fee structure not yet established
Risks
- This ETF can lose value if climate-focused companies underperform broader markets or if net-zero commitments prove unrealistic, potentially causing -20-30% declines
- Limited track record as a newly launched fund means performance patterns unknown, with potential for high volatility during initial trading periods
- International equity exposure subjects the fund to currency fluctuations, geopolitical risks, and emerging market volatility that could amplify losses during global downturns
Who Should Own This
Best suited for ESG-focused investors with 5+ year time horizons seeking international equity exposure aligned with climate goals. Medium-to-high risk tolerance required due to concentrated thematic approach and international volatility. Works as satellite holding (5-15% of equity allocation) for investors prioritizing environmental impact alongside financial returns.