(Bloomberg) -- Invesco Ltd. has launched a sustainability version of its second biggest exchange-traded fund as asset managers experience a surge in demand for environmental, social and governance-focused investments.

The Invesco ESG S&P 500 Equal Weight ETF will invest in companies considered leaders in ESG metrics, Invesco said in a statement Wednesday. The move adds an ESG focus to the asset manager’s longstanding ETF that tracks the S&P 500, which has $31 billion of assets, according to John Hoffman, Americas head of ETFs and indexed strategies at Invesco.

“There is demand around building better, more balanced portfolios and doing that with a tilt toward ESG,” Hoffman said in a phone interview.

Investors are increasingly looking to incorporate sustainability metrics into their portfolios. BlackRock Inc. recently launched ESG-focused versions of its fixed-income and equity ETFs. Last month, Invesco debuted an ESG fund tracking the Nasdaq.

The new fund will start by holding 185 stocks on an equal-weight basis. Apple Inc., Facebook parent Meta Platforms Inc. and Tesla Inc. are among companies that will be excluded from the fund initially.

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