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Vanguard unveils emerging market and Asia pacific ESG ETFs

The US giant now has a six-strong ESG range in Europe

Theo Andrew

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Vanguard has expanded its range of ESG ETFs with the launch of two strategies covering emerging markets and Asia Pacific.

The Vanguard ESG Emerging Market All Cap UCITS ETF (V3MM) and the Vanguard ESG Developed Asia Pacific All Cap UCITS ETF (V3PA) are listed on the London Stock Exchange, Deutsche Boerse, Borsa Italiana, Six Swiss Exchange and Euronext Amsterdam.

V3MM has a total expense ratio (TER) of 0.24% while V3PA has a TER of 0.17%.

Vanguard’s emerging market ETF tracks the FTSE ESG Emerging All Cap Choice index while the V3PA will track the FTSE Developed Asia Pacific All Cap Choice index.

Both ETFs apply exclusion criteria to remove or reduce exposure to certain industries that score poorly from an ESG perspective such as firearms, tobacco or fossil fuels.

Fong Yee Chan, head of ESG strategy for UK and Europe, 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.”

Vanguard continues to expand its ESG range – which is now six-strong – having launched two ETFs in August, the Vanguard ESG Developed Europe All Cap UCITS ETF (V3EA) and the Vanguard ESG North America All Cap UCITS ETF (V3NA).

The ETFs were the first the index behemoth launched in Europe in 2022 and along with V3MM and V3PA and brings its total range on the continent to 32.

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