BNP Paribas Asset Management (BNPP AM) has launched an ESG S&P 500 ETF, the first to be launched on its Irish fund platform.
The BNP Paribas Easy S&P 500 ESG UCITS ETF (SPEEU) listed today on the Euronext Paris, Euronext Dublin and the Deutsche Boerse with a total expense ratio (TER) of 0.12%.
It will be available on the Borsa Italiana and the Six Swiss Exchange next month, and on the London Stock Exchange at a date yet to be confirmed.
SPEEU will track the S&P 500 ESG index offering exposure to the largest stocks in the US while taking a “best in class ESG” approach.
The index includes 300 stocks relative to its parent index, with its largest overweight sectors currently IT and consumer discretionary, with the largest underweights the energy, utilities and industrial sectors.
The move was highly anticipated after ETF Stream revealed BNPP AM’s plans to domicile ETFs in Ireland in January as it looks to compete with other issuers across Europe.
Ireland has stolen a march on its Luxembourg rival due to its beneficial tax treaty for US equity ETFs. Those tracking US equities domiciled in Ireland have a 15% withholding tax rate on dividends versus 30% for ETFs domiciled in Luxembourg and other European jurisdictions.
Speaking to ETF Stream in April, Lorraine Sereyjol-Garros, global head of development for ETFs and index funds at BNPP AM, said the group was looking to launch 15 ETFs on its Irish platform by 2025.
Commenting on the launch of SPEEU, Sereyjol-Garros said: “Regulatory approval for BNP Paribas Easy ICAV will enable us to broaden our ETF offering to investors in countries that favour Irish ETFs, including the UK, Switzerland, the Netherlands and in the Nordics.
“The launch is a key milestone in the development of our range of sustainable ETFs. Ireland has a well-developed ETF ecosystem that benefits funds with exposure to US equities, as well as global equities, where we are planning further thematic ETF launches.”