Vanguard has kicked-off its environmental, social and governance (ESG) ETF push in Europe with the launch of a global equity strategy, ETF Stream can reveal.
The Vanguard ESG Global All Cap UCITS ETF (V3AA) is listed on the London Stock Exchange (LSE) with a total expense ratio (TER) of 0.24%.
V3AA tracks the FTSE Developed All Cap Choice index which currently offers exposure to 3,865 large, mid and small-cap stocks across developed and emerging markets globally.
The ETF is designed to offer exposure to companies that score well from an ESG perspective while also implementing a screening filter.
The index excludes any company involved in a variety of activities including labour and human rights controversies as defined by the United Nations Global Compact Principles, non-renewable energy, vice products such as tobacco or adult entertainment, controversial weapons and diversity practices.
Fong Yee Chan, head of ESG strategy, UK and Europe, at Vanguard, commented: “Our clients have a range of environmental and social concerns.
"Many want to put their money to work in a way that enables them to mitigate certain ESG-related risks, aligns with their values, and meets their investment goals. That is why we are committed to ensuring that our expansive and nuanced approach to ESG is reflected in our product offering and throughout our investment processes while balancing the potential for delivering long-term value to our investors.”
Vanguard already offers an index fund that tracks a similar index, the Vanguard ESG Developed World All Cap Equity Index fund, which launched in June last year.