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.
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
