Two exchange-traded funds (ETFs) that invest in developed markets in North America and Europe have been introduced by investment management Vanguard as “essential building blocks for ESG-aware portfolios.”
The FTSE Developed Europe All Cap Choice Index is tracked by the Vanguard ESG Developed Europe All Cap Ucits ETF and the FTSE North America All Cap Choice Index is tracked by the Vanguard ESG North America All Cap Ucits ETF.
The FTSE Global All Cap Index serves as the foundation for the FTSE Global Choice Index series, which is then vetted by FTSE Russell according to a set of environmental, social, and corporate governance standards.
Non-renewable energy sources, such as nuclear power, vice products, such as adult entertainment, gambling, alcohol, and cigarettes, as well as corporations implicated in labor, human rights, environmental, and anti-corruption standards disputes are all excluded from the screening process.
Vanguard’s head of ESG strategy for the UK and Europe, Fong Yee Chan, stated that over the past several years, they have carefully expanded their ESG range to allow investors to select the products that best suit their preferences and financial objectives.
The launches mark the beginning of the next phase of that commitment; they are expanding their line of ESG ETFs that may be used as “building blocks” to create low-cost, long-term ESG ETF portfolios for investors.
The two new ETFs are run by Vanguard’s Equity Index Group, which employs 57 people and oversees more than $4.8 trillion in assets globally.
Both ETFs have now been listed on the London Stock Exchange, Deutsche Boerse, Borsa Italiana, Six Swiss Exchange, and Euronext Amsterdam. Their recurring fees total 0.12%.
Exclusionary ESG funds offered by Vanguard follow benchmarks derived from indices that provide weighted exposure to big, medium, and small businesses in the appropriate target areas.
