The STOXX ESG-X Factor indices include a sustainability screening process for more than 50 of Qontigo’s factor-based benchmarks.
In addition to the five single factor exposures covering value, momentum, size, low risk and quality, the range also includes a multi-factor index combining all five factors.
The range includes ESG-X versions of the Euro Stoxx 50 and the Stoxx Europe 600 indices.
The factor exposures are derived from analytics tested by Axioma factor risk models and the ESG-X screening methodology is determined by data from Sustainalytics.
Qontigo’s ESG screening process removes companies involved in controversial products within as weapons, tobacco production, thermal coal and companies in breach of the Global Standard Screening principles.
Qontigo launched its STOXX factor index range in January 2020.
Holger Wohlenberg, chief business officer of Qontigo, commented: “Built with our institutional factor expertise and ESG-screened index construction rules, these indices offer a new tool to help factor investors achieve their sustainable investing strategies.”
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