ESGI
VanEck MSCI International Sustainable Equity ETF
ESGI
VanEck MSCI International Sustainable Equity ETF
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NAV$34.99
as at 15-Apr-24 -
Total Net Assets$183.03M
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Dividend Frequency1 each year
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Management fee (p.a.)0.55%
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Number of securities147
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Inception Date06-Mar-18
Overview
Fund Description
Our international sustainable ETF, ESGI gives investors exposure to a diversified portfolio of sustainable international companies listed on exchanges in developed markets around the world (ex Australia). Our international sustainable ETF aims to provide investment returns, before fees and other costs, which track the performance of the Index.
Key benefits
International equity portfolio incorporating investor values and beliefs
True-to-label International Sustainable equity ETF encompassing both values-based and environmental, social and governance (ESG) investing
A focus on ethical standards and low carbon impact
Screening for fossil fuels, human rights controversies and socially responsible investments (SRI) combined with ESG leadership and low carbon impact
State-of-the-art ESG leadership approach
Leveraging MSCI's leadership, resources and its ESG and carbon emission data metrics
Index Key points
Underlying Index
MSCI World ex Australia ex Fossil Fuel Select SRI and Low Carbon Capped Index
The Index comprises
The Index includes international listed securities that have high Environmental, Social and Governance (ESG) performance by applying the following negative and positive screens:
- Exclusion of companies whose business activities are not socially responsible investments (SRI) subject to revenue thresholds;
- Inclusion of only the leading ESG performers in each sector; and
- Exclusion of high carbon emitters.
The Index aims to achieve diversification by capping the maximum weight assigned to each security, thereby avoiding concentration risk.
Summary of Index methodologyThe Index is constructed using the following steps
1. The eligible universe of securities is defined as the securities in the MSCI World ex Australia Index.
2. Securities are screened for exclusion based on the following business activities:
| Business activities | Exclusion |
|---|---|
| Adult entertainment | All companies:
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| Alcohol | All companies:
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| Animal welfare | All companies that:
|
| Civilian firearms | All companies:
|
| Conventional weapons | All companies deriving:
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| Controversial weapons | All companies with “any tie” to Controversial Weapons (cluster munitions, landmines, depleted uranium weapons, biological/ chemical weapons, blinding lasers, nondetectable fragments and incendiary weapons). Any tie is defined by the methodology of the MSCI Global Ex-Controversial Weapons Indexes available in the documents section below. |
| Fossil fuels | All companies with “any tie” to fossil fuels (thermal coal, oil and gas), in particular reserve ownership, related revenues and power generation. Any tie is defined by the methodology of the MSCI Climate Change Metrics Methodology available in the documents section below. |
| Gambling | All companies deriving:
|
| Genetically modified organisms (GMO) | All companies deriving 5% or more revenue from activities like genetically modifying plants, such as seeds and crops, and other organisms intended for agricultural use or human consumption. |
| Nuclear power | All companies with “any tie” to the nuclear power industry. Any tie is defined by the methodology of the MSCI ESG Business Involvement Screening Research Methodology available in the documents section below. |
| Nuclear weapons | All companies that:
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| Tobacco | All companies:
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| Soft Drinks | All companies classified within the “Soft Drinks” sub-industry as per the Global Industry Classification Standard (GICS®) (the global industry classification standard jointly developed by MSCI Inc. and S&P Global). |
| Nutrition and health | All companies with a “Opportunities in Nutrition and Health score” greater than 2 (i.e. 3rd and 4th quartile). Companies that are classified within the “Household & Personal products” Industry group are exempted from exclusion due to this screening. |
3. ESG inclusion
MSCI ESG Research data is then used to determine which of the remaining securities are to be included in the Reference Index representing 15% of the Free Float Market Capitalisation in each GICS® sector from step 1.
4. Applying the carbon emitter screen
The remaining companies from step 2 are then ranked by carbon emission intensity and the top 25% by number are excluded from the Index. The cumulative weight of securities excluded from any GICS sector is capped at 30% of the weight of the sectors from step 2. Securities are also excluded until the cumulative potential carbon emissions of the excluded companies reaches 50% of the sum of the potential carbon emissions of the constituents remaining from step 2.
5. Component weighting and capping
The remaining securities are then weighted by their Free Float Market Capitalisation subject to a 5% weighting cap.
Index provider
MSCI Inc. MSCI is not a related entity of VanEck Investments Limited.
ESGI is indexed to a MSCI index. ESGI is not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to ESGI or the MSCI Index. The PDS contains a more detailed description of the limited relationship MSCI has with VanEck and ESGI.
For full details of the methodology, click here.
Performance
Holdings & allocations
Dividends
Election of Dividend Reinvestment Plan (DRP)
You can elect DRP by logging into Link’s Investor Centre (https://investorcentre.linkmarketservices.com.au/Login). Once you are logged in, please proceed to the “Payments and Tax” tab and select “Reinvestment Update”.