What Is the ERTH ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
ERTH, the Invesco MSCI Sustainable Future ETF, is a thematic ETF that concentrates on environmental solutions companies in alternative energy, energy efficiency, and water resources. Compared with broad ESG ETFs, the key selection criteria are its higher theme concentration, its expense ratio, its dividends, and its volatility.
SubscribeWhat Is the Invesco MSCI Sustainable Future ETF?
It is an environmental theme ETF that tracks the MSCI Global Environment Select Index. It selects companies that generate a significant portion of their revenue from green businesses and spreads its investments broadly across environmental solutions such as alternative energy, energy efficiency, water resources, and pollution prevention.
It suits investors who want long-term exposure to climate and environmental themes and are willing to accept higher volatility than a standard index.
It is a passive (index-tracking) ETF managed by Invesco.
How Does the Invesco MSCI Sustainable Future ETF Invest?
| Item | Details |
|---|---|
| Tracking Index | MSCI Global Environment Select |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Semiannual |
| Dividend Frequency | Quarterly |
| Issuer | Invesco |
| Expense Ratio | 0.65% |
It selects global companies that generate a significant portion of their revenue from green businesses and concentrates its exposure on six environmental impact themes. It holds the index constituents at their index weights, and its holdings are automatically updated on a regular basis according to the index rules.
- Exposure concentrated in six environmental impact themes
- Stock selection based on the share of green revenue
Invesco MSCI Sustainable Future ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $119.2M, and the expense ratio is 0.65% per year.
Because its theme concentration is higher than that of broad core ETFs, its volatility and tracking behavior may differ from those of a standard index.
Invesco MSCI Sustainable Future ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeIt reacts sensitively to macro variables such as green policy, interest rates, and energy prices, and it tends to be more volatile than a standard index. Given the nature of the theme, its returns can swing widely.
Fund inflows and outflows, driven by demand for sustainable investing, are affected by shifts in policy and market sentiment. As a thematic ETF, its fund flows tend to be more volatile than those of broad core ETFs.
Invesco MSCI Sustainable Future ETF Pros and Cons
Its strength is concentrated exposure to the environmental solutions theme, while its weaknesses are the cost burden and the volatility that comes with theme concentration.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products to the Invesco MSCI Sustainable Future ETF
Broad ESG-integrated ETFs such as ESGD, ESGE, and VSGX shown in the table have lower theme concentration and tend to charge lower fees. The difference is that ERTH selects stocks based on green solutions revenue, which gives it higher theme concentration. As a climate theme alternative from the same issuer, Invesco, the broader KLMN and KLMT are also worth considering.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 ESGD | iShares Trust iShares ESG Aware MSCI EAFE ETF | $103.50 | +0.2% | $11.8B | 0.20% | 3.31% | +9.0% |
 VSGX | Vanguard ESG International Stock ETF | $78.50 | -0.1% | $6.5B | 0.10% | 3.09% | +11.1% |
 ESGE | iShare Inc iShares ESG Aware MSCI EM ETF | $49.42 | -0.2% | $6.3B | 0.25% | 2.29% | +11.0% |
 KLMN | Invesco MSCI North America Climate ETF | $30.93 | -0.4% | $2.0B | 0.09% | 1.17% | +12.1% |
 KLMT | Invesco MSCI Global Climate 500 ETF | $34.23 | -0.3% | $1.6B | 0.10% | 1.82% | +12.0% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| DLR | Digital Realty Trust Inc | 0.11% | $179.99 | -1.9% | $68.1B | 75.5 | 2.72% |
| NVDA | NVIDIA Corp | 0.10% | $162.85 | -2.0% | $3.92T | 20.6 | 0.48% |
| TSLA | Tesla Inc | 0.09% | $390.22 | -1.8% | $1.54T | 429.2 | - |
 FSLR | First Solar Inc | 0.06% | $171.39 | -0.5% | $18.4B | 9.9 | - |
 WY | Weyerhaeuser Co | 0.03% | $20.81 | +1.7% | $15.0B | 33.2 | 4.04% |
 NXT | Nextpower Inc | 0.03% | $95.03 | +1.5% | $14.3B | 23.9 | - |
Invesco MSCI Sustainable Future ETF Investor Checkpoints
These are the points to check before investing in ERTH. As an environmental theme ETF, it differs in character from broad core ETFs, so costs, theme concentration, volatility, and currency exposure should be thoroughly reviewed before buying.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the impact of cumulative costs over a long holding period | Annual fee applies |
| 🌱 Theme Concentration | Check how concentrated the environmental theme exposure is | High theme concentration |
| 📊 Volatility | Check the range of price swings versus a standard index | Relatively high volatility |
| 💱 Currency | Impact on returns converted into Korean won | No currency hedge |
Theme concentration and sensitivity to policy and macro variables are the main drivers of short-term volatility. Changes in the green policy environment can make it move differently from a standard index, so it carries more volatility risk than core assets.
It is a suitable satellite holding for investors who want long-term exposure to environmental and climate themes. Keep the cost and theme concentration burdens in mind, and if you want broader exposure, it is advisable to also consider alternatives such as KLMN and KLMT.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 26, 2026.
Today's 5 AI picks, all free