BNP Paribas Asset Management (BNPP AM) has changed the benchmarks for two thematic ETFs to track environmental, social and governance (ESG) replacements.
Listed on Euronext Paris and Xetra, the BNP Paribas Easy ECPI Global ESG Infrastructure Equity UCITS ETF (XU61) and the BNP Paribas Easy MSCI Europe Small Caps SRI S-Series 5% Capped UCITS ETF (EESM) are the first infrastructure and small-cap ETFs to adopt an ESG approach.
XU61 was previously named BNP Paribas Easy NMX 30 Infrastructure Global UCITS ETF. Its benchmark has changed from the NMX 30 Infrastructure Global index to the more sustainable ECPI Global ESG Infrastructure index.
It tracks the performance of a global basket of 100 listed companies with the highest ESG ratings in the infrastructure sector. The companies’ financials must primarily come from communication, energy, transport, waste management, water or social infrastructure.
EESM was previously named BNP Paribas Easy MSCI Europe Small Caps ex CW UCITS ETF. Its benchmark has changed from the MSCI Europe Small Caps ex Controversial Weapons index to the MSCI Europe Small Caps SRI S-Series 5% Capped index.
It tracks the performance of roughly 200 small caps selected according to MSCI’s socially responsible investing (SRI) methodology.
Isabelle Bourcier, BNPP AM's head of quantitative and index management, commented: “Our clients increasingly want to integrate a responsible approach into their savings, which is how we are adapting our range.”
XU61 has a total expense ratio (TER) of 0.6% and EESM has a TER of 0.25%.
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