Invesco Breaks Records with $2.4 Billion Climate ETF Launch

Invesco Ltd. has made history in the world of sustainable investing by launching the Invesco MSCI North America Climate ETF (KLMN) with an unprecedented $2.4 billion in initial assets.

This groundbreaking ETF, which debuted on the New York Stock Exchange, is backed by a record-setting investment from Finnish pension insurer Varma, marking the largest funding ever for a new ETF launch globally.

ETF Strategy and Focus

The KLMN ETF is designed to track the MSCI Global Climate 500 North America Selection Index, targeting North American companies that align with strict environmental and climate criteria.

This focus reflects the growing demand for investment products that combine environmental stewardship with institutional efficiency.

Collaborative Development

The ETF and its underlying index were developed through a strategic collaboration between Invesco, MSCI, and Varma.

This partnership ensures that the ETF aligns closely with Varma's climate-focused investment strategy while leveraging MSCI's expertise in index design.

Market Impact and Trends

The launch of KLMN highlights the increasing popularity of thematic ETFs among institutional investors. The U.S.-listed thematic ETF market now exceeds $439 billion in assets under management, demonstrating the growing appetite for cost-effective, targeted allocations in sustainable investing.

Key Takeaways

• Invesco's KLMN ETF sets a new record with $2.4 billion in initial assets from Varma.
• The ETF focuses on North American companies committed to reducing greenhouse gas emissions and carbon footprints.
• This launch underscores the rising demand for innovative, climate-focused investment products.
• The collaboration between Invesco, MSCI, and Varma showcases the power of customized index solutions for institutional investors.

As the investment world continues to prioritize sustainability, Invesco's record-breaking ETF launch serves as a milestone in the evolution of climate-focused institutional investing.

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Article by Euisung Lee, Asuene Global Business team. Asuene Global Business team, the global sustainability intelligence team at Asuene, acts as the guidepost through the evolving landscape of corporate sustainability. The Asuene Global Business team identifies emerging trends and regulations in decarbonization, climate policy, and broader ESG matters. This knowledge is translated into actionable insights through white papers, articles, webinars, and regular updates on our website and social media.