UniCredit Bank has launched exchange-traded funds (ETFs) based on eurozone indices that combine investment factors with responsible investing criteria.
The two funds are launched through Structured Invest, UniCredit’s Luxembourg management company, and are based on the Euro Stoxx Index but with environmental, social and governance (ESG) exclusions.
Indices used are the Euro iStoxx ESG-X & Ex Nuclear Power Multi Factor Index and Euro Stoxx ESG-X & Ex Nuclear Power Minimum Variance Unconstrained Index.
The first index exploits risk premia that should deliver excess returns, whilst also filtering out companies that do not comply with ESG principles.
The second is also ESG-powered but seeks to also lower the portfolio’s volatility.
Vincenzo Spadaro, global head of institutional equity derivatives at UniCredit, said asset owners need to look for solutions beyond the traditional market-cap-weighted index in order to meet ESG investment criteria.
Both products are approved for distribution in Austria, Germany, Italy, Luxembourg and France.
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