Invesco Indexing Consultation on Proposed Changes to the Security Selection Criteria for US ex-Real Estate Equity Indexes

Invesco Indexing is initiating a consultation regarding a potential change to the security selection criteria of four Invesco US ex-Real Estate indexes¹. Specifically, we are proposing to introduce the following exclusionary criteria: 

1. Exclude the 10% lowest-ranked securities by ESG Score². Securities without an ESG Score would be ineligible for Index inclusion.
2. Exclude the 10% lowest-ranked securities by Governance Score². Securities without a Governance Score would be eligible for Index inclusion. 
3. Exclude securities that rank in one of the two worst levels by Controversy Score².  Securities without a Controversy Score would be ineligible for Index inclusion.
4. Exclude securities from the following categories³:

If adopted, the changes would be effective with the December 2022 rebalance.

We invite interested stakeholders to tell us whether they would like to adopt the changes as proposed or maintain the current security selection criteria by contacting us at IndexSupport@Invesco.com. The deadline to respond to this consultation is August 5, 2022.

1 - Invesco US ex-Real Estate Low Volatility Index, Invesco US ex-Real Estate Price Momentum Index, Invesco US ex-Real Estate Quality Index, and Invesco US ex-Real Estate Value Index
2 - Source: Sustainalytics.
3 - The level of involvement necessary for exclusion varies by category, ranging from zero tolerance to 25%.