ETF Evaluator: Invesco MSCI Global Climate 500 ETF () Follow This ETF

Invesco MSCI Global Climate 500 ETF Overview

Invesco MSCI Global Climate 500 ETF (KLMT) is a passively managed International Equity Global Large-Stock 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 ACWI Select 500 Index. The fund generally will invest at least 90% of its total assets in securities that comprise the underlying index as well as ADRs and GDRs that represent securities in the underlying index. To construct the underlying index, the index Provider conducts screens on the universe of companies within the MSCI ACWI ex Select Countries Index (the “Parent Index”) to exclude companies in the business of controversial or nuclear weapons, thermal coal mining, or thermal coal-based power generation. The fund is non-diversified.

About Invesco MSCI Global Climate 500 ETF (KLMT)

There are 4 members of the management team with an average tenure of 1.60 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 2 primary benchmarks: MSCI ACWI NR USD index with a weighting of 100% and MSCI ACWI Select 500 NR USD index with a weighting of 100%. Invesco MSCI Global Climate 500 ETF has 514 securities in its portfolio. The top 10 holdings constitute 24.6% 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 Global Climate 500 ETF is part of the Equity global asset class and is within the International Equity ETF group. Invesco MSCI Global Climate 500 ETF has 35.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 64.7% There is 35.2% 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 Global Climate 500 ETF has 0.1% of the portfolio in cash.

Assets Under Management

The fund has $1 billion in total assets, which is below the $2 billion average for the Global Large-Stock 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.

KLMT 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 Global Climate 500 ETF expense ratio is low compared to funds in the Global Large-Stock Blend category. Invesco MSCI Global Climate 500 ETF has an expense ratio of 0.10%, which is 80% 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 Global Climate 500 ETF has a portfolio turnover rate of 16%, which indicates that it holds its assets around / 0.1 years. By way of comparison, the average portfolio turnover is 50% for the Global Large-Stock Blend category.

Recently, in the month of July 2026, Invesco MSCI Global Climate 500 ETF returned -0.2%, which earned it a grade of C, as the Global Large-Stock Blend category had an average return of 0.0%. 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 Global Climate 500 ETF has a trailing yield of 1.76%, which is above the 1.66% 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 Global Climate 500 ETF Grades

Year to date, the ETF has returned 11.4%, 2.2 percentage points better than the category, which translates into a grade of B. The fund has returned 22.1% over the past year (grade of C).

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