Invesco MSCI Emerging Markets ESG Climate Paris Aligned UCITS ETF Acc

What this fund is

Invesco MSCI Emerging Markets ESG Climate Paris Aligned UCITS ETF Acc is an exchange-traded fund (ETF) from Invesco, traded under the ticker PAEM (ISIN IE000PJL7R74). It lets you buy a basket of holdings in a single trade, spreading your money across them rather than one company. In plain terms it is about owning small slices of companies, so you share in their growth when they do well — and their falls when they don't, spread across its target market. It follows the MSCI Emerging Markets ESG Climate Paris Aligned Benchmark PAB Select Index index (passive investing): it tracks the market rather than relying on a manager, keeping running costs down, and its largest holdings include TAIWAN SEMICONDUCTOR MANUFAC TWD10, SK HYNIX INC KRW5000 and MEDIATEK INC TWD10. It holds around 265 positions (the ten largest ≈ 36.1%), spreading risk so no single holding decides your outcome.

By geography it is weighted towards ~30.7% Taiwan, ~16.5% South Korea and ~13% India. By industry it concentrates most in ~44.3% Technology and ~18.8% Financials. Investors often use a broad fund like this as a long-term 'core' holding — a single building block that covers much of a global portfolio in one trade. Its ongoing charge (TER) is 0.19% a year — about €19 a year on a €10,000 holding, taken automatically from the fund; counting the trading costs inside the fund, the all-in figure is around 0.28%. Income such as dividends is automatically reinvested inside the fund (an accumulating share class), so returns compound without you doing anything.

It holds the underlying investments directly (physical replication); it is domiciled in Ireland and UCITS-regulated, a European standard built to protect everyday investors and trades in USD. On the standard KID risk scale it is rated 4 out of 7 and its price has swung about 20.9% over the past year, which describes how much its price tends to move rather than whether it is good. It launched in 2022, and its KID suggests a holding period of 5 years. As with any investment, its value can go down as well as up, and past performance is not a guide to future results. (Fund data sourced from Invesco.)