ESG Investing  

Vanguard launches two ESG ETFs

Vanguard launches two ESG ETFs
 

Vanguard has added two more environmental, social and governance focused exchange-traded funds to its offering.

The firm said its ESG ‘Emerging Markets All Cap’ fund and the ESG ‘Developed Asia Pacific All Cap’ fund are designed to serve as “core building blocks” for ESG-aware portfolios.

The exchange-traded funds have been listed on the London Stock Exchange, Deutsche Börse, Borsa Italiana, Six Swiss Exchange and Euronext Amsterdam.

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The ESG Emerging Markets fund tracks the FTSE Emerging All Cap Choice Index and has an ongoing charges figure of 0.24 per cent.

While the ESG Developed Asia Pacific fund tracks the FTSE Developed Asia Pacific All Cap Choice Index and has an ongoing charges figure of 0.17 per cent.

Vanguard's exclusionary ESG funds track benchmarks, then apply screening criteria to avoid or reduce exposure to industries such as firearms, tobacco and fossil fuels. 

Vanguard head of ESG strategy, UK and Europe, Fong Yee Chan said: “Exclusionary ESG index products enable investors to incorporate their ESG preferences into their investments, while retaining the key advantages of index funds: diversification, transparency and low costs.”

“Interest in ESG index investing continues to rise with European industry net cash flow doubling last year,” she added.

The two products join Vanguard’s list of existing ESG funds.

Fund Name

 

Strategy

 

Domicile

 

OCF

 

Vanguard ESG Emerging Markets All Cap UCITS ETF

 

Index

 

Ireland

 

0.24%

 

Vanguard ESG Developed Asia Pacific All Cap UCITS ETF

 

Index

 

Ireland

 

0.17%

 

Vanguard ESG Developed Europe All Cap UCITS ETF

 

Index

 

Ireland

 

0.12%

 

Vanguard ESG North America All Cap UCITS ETF

 

Index

 

Ireland

 

0.12%

 

Vanguard ESG Global All Cap UCITS ETF

 

Index

 

Ireland

 

0.24%

 

Vanguard ESG Developed World All Cap Equity Index Fund (UK)

 

Index

 

U.K.

 

0.20%

 

Vanguard ESG Developed World All Cap Equity Index Fund

 

Index

 

Ireland

 

0.20%

 

Vanguard ESG Emerging Markets All Cap Equity Index Fund

 

Index

 

Ireland

 

0.25%

 

Vanguard SRI European Stock Fund

 

Index

 

Ireland

 

0.14%

 

Vanguard ESG Global Corporate Bond UCITS ETF

 

Index

 

Ireland

 

0.15%

 

Vanguard SustainableLife 40-50% Equity Fund

 

Active

 

U.K.

 

0.48%

 

Vanguard SustainableLife 60-70% Equity Fund

 

Active

 

U.K.

 

0.48%

 

Vanguard SustainableLife 80-90% Equity Fund

 

Active

 

U.K.

 

0.48%

 

Vanguard Global Sustainable Equity Fund

 

Active

 

U.K.

 

0.48%

 

The  ETFs are managed by Vanguard’s Equity Index Group, which manages more than $4.8tn in assets worldwide.

jane.matthews@ft.com