ETF Evaluator: Invesco MSCI North America Climate ETF () Follow This ETF

Invesco MSCI North America Climate ETF Overview

Invesco MSCI North America Climate ETF (KLMN) is a passively managed U.S. Equity Large Blend exchange-traded fund (ETF). Invesco launched the ETF in 2024.

The investment seeks to track the investment results (before fees and expenses) of the MSCI Global Climate 500 North America Selection Index (the “underlying index”). The fund generally will invest at least 90% of its total assets in securities that comprise the underlying index as well as American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”) that represent securities in the underlying index. The underlying index is designed to track the performance solely of those stocks of mid- and large-cap companies within the Parent Index that are located in the United States or Canada. The fund is non-diversified.

About Invesco MSCI North America Climate ETF (KLMN)

There are 4 members of the management team with an average tenure of 1.25 years: Peter Hubbard (2024), Michael Jeanette (2024), Pratik Doshi (2024) and Faiz Syed (2026). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 1 primary benchmark: MSCI Glb Climate 500 NA Selectn NR USD index with a weighting of 100%. Invesco MSCI North America Climate ETF has 277 securities in its portfolio. The top 10 holdings constitute 35.0% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is considered to have an ESG focus with its investment selection and management.

Invesco MSCI North America Climate ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. Invesco MSCI North America Climate ETF has 5.1% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 94.9% There is 5.1% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Invesco MSCI North America Climate ETF has 0.0% of the portfolio in cash.

Assets Under Management

The fund has $1 billion in total assets, which is below the $13 billion average for the Large Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

KLMN Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Invesco MSCI North America Climate ETF expense ratio is low compared to funds in the Large Blend category. Invesco MSCI North America Climate ETF has an expense ratio of 0.09%, which is 78% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Invesco MSCI North America Climate ETF has a portfolio turnover rate of 6%, which indicates that it holds its assets around / 0.2 years. By way of comparison, the average portfolio turnover is 158% for the Large Blend category.

Recently, in the month of July 2026, Invesco MSCI North America Climate ETF returned 0.1%, which earned it a grade of C, as the Large Blend category had an average return of -0.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Invesco MSCI North America Climate ETF has a trailing yield of 1.20%, which is above the 1.16% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Invesco MSCI North America Climate ETF Grades

Year to date, the ETF has returned 10.2%, 0.7 percentage points better than the category, which translates into a grade of C. The fund has returned 19.7% over the past year (grade of B).

For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.

Otherwise, for more information about Invesco MSCI North America Climate ETF, including its riskiness, submit your email to unlock the rest of the article.