Industry Updates

VanEck tightens ESG metrics on developed markets ETF following Morningstar changes

The new metrics will introduce tighter screening mechanisms

Theo Andrew

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VanEck will see the ESG metrics on its developed markets dividend ETF tightened following changes made by index provider Morningstar.

In a shareholder notice, the group said the VanEck Developed Markets Dividend Leaders UCITS ETF (TDIV) will go from tracking the Morningstar Developed Markets Large Cap Dividends Leaders index to the Morningstar Developed Markets Large Cap Dividend Leaders Screened Select index.

It said the ETF will see “more comprehensive screening mechanisms” introduced as part of the changes which will have a “minimal” effect on index composition, return and performance.

Currently, TDIV selects the top 100 shares with the highest dividend payouts, with the weight of each share based on the total dividend payout, with a maximum weighting of 5%.

TDIV, which houses €332.6m assets under management (AUM), is classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).

Launched in 2016, the ETF has a total expense ratio (TER) of 0.38% and has returned 9.2% since inception.

VanEck has continued to expand its ETF range in 2023, with the launch of the VanEck Defense UCITS ETF (DFNS) and VanEck Oil Services UCITS ETF (OIHV) in April and the VanEck Uranium and Nuclear Technologies UCITS ETF (NUCL) in February, ETF Stream revealed.

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