Invesco MSCI Sustainable Future ETF

Invesco MSCI Sustainable Future ETF (ERTH) is an index fund that tracks the MSCI Global Environment Select Index. The index holds about 170 companies worldwide that earn most of their revenue from themes such as alternative energy, green building and sustainable water. Its mix includes clean-energy names like BYD, Tesla and Vestas alongside real estate holdings such as Digital Realty. At 0.65% a year, it costs more than every similar fund it was compared with.

• Over the year to Oct 27, 2026, ERTH returned -13.4%, 6th of 7 among similar funds.
• Its 5-year annualized return was -8.9%.
• Its worst full calendar year was 2022 (-27.6%); its best was 2025 (+18.5%).
• The deepest fall in its price history was 51.7% (Nov 1, 2021 to Apr 8, 2025), not yet recovered.

As of Jul 31, 2026, the fund held 174 securities; the ten largest made up 35.34% of assets. It also reported 12.82% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jul 31, 2026, investors withdrew a net $2.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +3.19%, -7.23%, -2.77%.

ERTH tracks the MSCI Global Environment Select Index. MSCI builds it from the MSCI ACWI Investable Market Index, which covers large, mid-size and small companies in developed and emerging markets. To get in, a company must earn at least 75% of its revenue from six themes: alternative energy, energy efficiency, green building, sustainable water, pollution prevention and control, and sustainable agriculture. MSCI also uses its own ESG (environmental, social and governance) ratings to judge each company's commitment to these themes. Once in, a company stays as long as that revenue share does not fall below 60%.

Holdings are weighted by free float-adjusted market value. Bigger companies get bigger weights, counting only shares available to the public. MSCI caps any single stock at 5%, though weights can drift between index reviews. As of June 30, 2026, the index had 173 companies, ranging from about $261 million to $4.8 trillion in market value. Invesco uses full replication, which means it buys essentially every stock in the index at its index weight.

The index can include REITs (real estate investment trusts), and as of April 30, 2026, the fund had significant exposure to the real estate and industrials sectors. ERTH is a plain stock fund, with no leverage or options.

• ERTH charges 0.65% a year, versus an average of 0.42% for the similar funds below (7th of 7, cheapest first).
• Of that, 0.5% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.03% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $66 in the first year and $841 over 10 years (assuming a 5% annual return).

ERTH is a narrow, volatile theme fund that has seen deep and lasting losses, so it fits better as a small add-on than as a foundation.

ERTH could add global exposure to clean energy, electric vehicles and green real estate, but its history has been rough. The fund's figures don't cover the 2008 crisis. In the 2020 COVID crash it lost 23.79% in the first quarter, then ended the year up 51.62%. It fell 31.1% in the 2022 bear market, and 2022 was its worst calendar year, at −27.08%. Its deepest drop was 51.7%, from November 2021 to April 2025, and it had not recovered as of October 27, 2026. Anyone who has to sell in a slump like that could lock in large losses.

The trailing 12-month yield was 2.01% as of October 27, 2026, paid quarterly. Costs of 0.65% a year are above the 0.42% peer average. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).