Industry Updates

VanEck adds ESG screen and doubles fees on European equal-weight ETF

TER will rise from 0.2% to 0.4%

Theo Andrew

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VanEck has tightened the ESG screen on its European equal-weight ETF and raised fees from 0.20% to 0.40%.

The VanEck European Equal Weight UCITS ETF (TEET) will update the ESG-screening method of its index and will change its name to the VanEck Sustainable European Equal Weight UCITS ETF, under the same ticker.

TEET, which tracks the Solactive European Equity index, currently has €44.3m assets under management (AUM).

As a result of the changes, the ETF will be classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).

The ESG criteria of the ETF will be based on the review and evaluation of the group’s independent research partner VideoEiris and will take into account the UN Global Compact violations.

The index will undertake a quarterly review of sustainability breaches.

TEET flows have been flat despite returning 27.62% over the past year.

The ETF issuer has undergone several ESG switches in the last few months. Earlier this month, it said it was planning to add ESG screens on the indices tracked by its semiconductor and hydrogen ETFs due to “increased demand for ESG compliant investments”.

In November, VanEck switched the index on its US equity ETF to one that tracks ESG metrics, renaming it the VanEck Vectors Morningstar US Sustainable Wide Moat UCITS ETF (MOAT).

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