Invesco MSCI Sustainable Future ETF (ERTH US) - Portfolio Construction Methodology

Core Insights - The Invesco MSCI Sustainable Future ETF (ERTH US) is designed to provide global exposure to companies addressing six environmental impact themes, including alternative energy and sustainable agriculture [1] Group 1: Portfolio Construction Methodology - The underlying index, MSCI Global Environment Select Index, requires eligible companies to derive at least 75% of their revenue from specified environmental activities [1] - The index employs a free-float market-cap weighting with a 5% cap on single issuers to limit concentration and ensure broad theme representation [1] - Quarterly rebalancing is conducted to refresh eligibility based on revenue exposure and to reset issuer caps, adhering to MSCI's standard practices for corporate actions [1] - The design emphasizes high thematic purity and investability by enforcing substantial revenue alignment and explicit weight limits at the name level [1]