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Vanguard launches ESG-aware ETFs for Europe and North America

ETF blocksInvestment manager Vanguard has launched two ETFs focused on investments in developed European and North American countries designed as “core building blocks for ESG-aware portfolios”.

The Vanguard ESG Developed Europe All Cap Ucits ETF tracks the FTSE Developed Europe All Cap Choice Index, and the Vanguard ESG North America All Cap Ucits ETF tracks the FTSE North America All Cap Choice Index.

The FTSE Global Choice Index series is constructed from the FTSE Global All Cap Index, which is then screened for specific environmental, social, and corporate governance criteria by FTSE Russell.

The screening process excludes non-renewable energy (including nuclear power), vice products (including adult entertainment, gambling, alcohol and tobacco), weapons, and companies involved in controversies related to labour, human rights, environmental and anti-corruption standards.

Fong Yee Chan, head of ESG strategy for the UK and Europe at Vanguard, said: “Over the past couple of years, we have diligently developed our ESG range to enable investors to choose the products that best align with their preferences alongside their investment goals.

 “These launches are the start of the next stage in that commitment; building out our suite of ‘building block’ ESG ETFs, designed to help investors construct ESG ETF portfolios for the long-term, at a low cost.”

The two new ETFs are managed by Vanguard’s Equity Index Group, which manages more than $4.8 trillion in assets globally and has 57 team members. 

Both ETFs have an ongoing charges figure of 0.12% and have been listed on the London Stock Exchange, Deutsche Boerse, Borsa Italiana, Six Swiss Exchange and Euronext Amsterdam. 

Vanguard’s exclusionary ESG funds track benchmarks that are derived from indices that give a weighted exposure to large, medium and small companies in the relevant target markets.

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