UniCredit has partnered with index provider STOXX to launch two smart beta ETFs that incorporate environmental, social and governance (ESG) factors.

The UC EURO iSTOXX ESG-X Multi Factor UCITS ETF (ECBF) and the UC EURO STOXX ESG-X Minimum Variance ETF (ECBV) are listed on Deutsche Börse with ongoing charges figures (OCFs) of 0.40%.

ECBF tracks the EURO STOXX ESG-X & Ex Nuclear Power Multi Factor index and ECBV replicates the EURO STOXX ESG-X & Ex Nuclear Power Minimum Variance Unconstrained index.

Both indices use ESG exclusion criteria from data provider Sustainalytics, which are based on the principles of the United Nations Global Compact on human rights, labour rights, the environment, business ethics and anti-corruption.

Utilising a multi-factor optimisation process, ECBF takes into account profitability, yield, leverage, value and low volatility while ECBV pursues the goal of minimum variance.