Ossiam has become the latest issuer to launch a suite of Paris-aligned benchmark (PAB) climate ETFs along with one quantitative ESG ETF.
The range of climate ETFs are listed on Deutsche Boerse and SIX Swiss Exchange with total expense ratios (TERs) ranging from 0.12% to 0.29%.
The ETFs are:
- Ossiam Bloomberg Eurozone PAB UCITS ETF (OP2E)
- Ossiam Bloomberg Europe ex Eurozone PAB UCITS ETF (OP4E)
- Ossiam Bloomberg Japan PAB UCITS ETF (OP5E)
- Ossiam Bloomberg Asia Pacific ex Japan PAB UCITS ETF (OP6E)
- Ossiam Bloomberg USA PAB UCITS ETF (OP7H)
- Ossiam Bloomberg Canada PAB UCITS ETF (OP8H)
- Ossiam Bloomberg World PAB UCITS ETF (OP9U)
The suite of ETFs track Bloomberg PAB climate indices which were created in June this year.
By capturing companies aligned with the Paris Agreement’s 1.5°C target, PAB indices aim to have half the carbon intensity of their parent benchmarks and capture companies able to reduce their carbon emissions by 7% a year.
Bloomberg’s PAB indices are based on greenhouse gas reporting and estimates on more than 50,000 companies. The indices follow the United Nations’ precautionary principle to ensure emissions data is not underestimated.
The French ETF issuer has also partnered with Barclays and Quantic to launch an ETF capturing 49 North American and 21 rest-of-world equities.
With a TER of 0.70%, the Ossiam Barclays Quantic Global E UCITS ETF (BQGE) tracks the Barclays Quantic Global E index which rebalances every two months to capture top performing companies on quantitative metrics, that fall outside of ESG-excluded sectors.
The firm’s launch spree comes just two months after it shut the £2m Ossiam FTSE 100 Minimum Variance UCITS ETF (UKMV) and £10m Ossiam Emerging Markets ESG Low Carbon UCITS ETF (DEMV) due to a lack of investor demand.