ERTH vs IQSZ

ERTHCInvesco MSCI Sustainable Future ETF

IQSZBInvesco Global Equity Net Zero ETF

In short

ERTH Born in 2006 as a cleantech fund, ERTH now tracks MSCI's six-theme environment index, from alternative energy to green building to sustainable water. Fee: 0.65% net of a waiver through August 31, 2028.

IQSZ Active net-zero investing priced like an index fund: 0.19% for a global, roughly 500-stock portfolio where a quant process weighs momentum, quality and value alongside a company's emissions plans.

Stated mandate

ERTH The fund seeks to provide exposure to companies addressing multiple environmental-impact themes, including alternative energy, energy efficiency, green building, and sustainable water.

IQSZ Seeks long-term total return. It actively invests at least 80% of assets in equity securities of companies judged to support the transition to a net-zero economy through current or planned greenhouse-gas reductions, primarily among large- and mid-cap companies in developed and emerging markets.

Why people hold it

• ERTH Six themes, not one: alternative energy, energy efficiency, green building, sustainable water, pollution prevention, and sustainable agriculture, across about 180 global names.invesco.com
• The index takes only companies drawing 50% or more of revenue from those six themes, so you own the business itself, not a conglomerate's side project.msci.com
• Trading since 2006, when it launched as the Invesco Cleantech ETF, it moved to the MSCI six-theme index in March 2021. Few climate funds carry that much history.invesco.com

• IQSZ 0.19% expense ratio against a peer-group median near 0.56%. Active management, index-fund pricing.
• Roughly 500 large- and mid-cap names across developed and emerging markets, so the climate tilt rides on a broad base rather than a handful of pure plays.
• At least 80% of assets go to companies judged to be cutting greenhouse gases now or under a stated plan, run through a momentum, quality and value quant screen.

Worth knowing

• ERTH At 0.65% net of a waiver through August 31, 2028 (0.68% gross), it sits above the category median and well above peers like KLMT at 0.10% and IQSZ at 0.19%.
• Thinly traded and modest in size, so the spread can cost more than the headline fee.
• Our review places it in the lower half of its climate peer group, with cost and swings in price the main drags.

• IQSZ Launched in 2025 and thinly traded, so spreads can run wider than in a mega-fund and there is little history to judge the process on.
• Net-zero alignment is a manager judgment that counts planned cuts, so the book can look closer to a broad global fund than a clean-energy basket.
• Emerging-market holdings add currency moves and local political risk to the mix.

Full ERTH profile⁠

Full IQSZ profile⁠