ERTH vs KLMT

ERTHCInvesco MSCI Sustainable Future ETF

KLMTAInvesco MSCI Global Climate 500 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.

KLMT A climate fund that behaves like a core global index fund: roughly 500 developed and emerging market stocks, full replication, and a 0.10% fee that undercuts most of the thematic aisle.

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.

KLMT The Fund seeks to track the investment results of the MSCI ACWI Select Climate 500 Index before fees and expenses, using full replication of the index.

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

• KLMT Costs 0.10% a year, a fraction of the typical global thematic fund and cheaper than the other top-rated climate names in its group, including LCTD and IQSZ.
• Holds about 500 names across developed and emerging markets, so it reads like a broad global equity sleeve with a climate screen rather than a narrow theme bet.invesco.com
• Buys the MSCI ACWI Select Climate 500 Index outright instead of sampling it, and has stayed tight to that index. One of the cleaner implementations in its peer group.invesco.com
• Pays out quarterly, the standard rhythm for a broad global stock index fund.

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.

• KLMT Thinly traded for its size. Limit orders and a glance at the spread matter more here than with a mega-cap index fund.
• Launched in 2024, so the live track record is short and there is not yet a full-cycle history to judge it on.
• The climate screens reshape the global benchmark, so weights and sector mix will drift from a plain vanilla all-country index.invesco.com

Full ERTH profile⁠

Full KLMT profile⁠