ESGIAU VanEck MSCI International Sustainable Equity ETF Please read important disclosure Close important disclosure false au en false false
  • ESGI
    VanEck MSCI International Sustainable Equity ETF

    ESGI
    VanEck MSCI International Sustainable Equity ETF

    • NAV
      $35.17

      as at 12-Apr-24
    • Total Net Assets
      $183.98M
    • Dividend Frequency
      1 each year
    • Management fee (p.a.)
      0.55%
    • Number of securities
      147
    • Inception Date
      06-Mar-18
    The NAV is generally calculated daily after all markets are closed for that day based on the closing price of the securities on the relevant foreign stock exchange. The NAV is then converted to AUD based on the relevant London WM Reuters 4pm exchange rate. This means, due to Australia’s time zone, that the NAV will generally not be updated until around 3pm next business day.
    ESGI_PROFILE_IMAGE-update

    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 methodology

    The 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:
    • deriving 5% or more revenue from the production of adult entertainment materials; or
    • 15% or more aggregate revenue from the production, distribution and retail of adult entertainment materials.
    Alcohol All companies:
    • classified as a “Producer”; or
    • deriving 5% or more aggregate revenue from the production, distribution, retail and supply of alcohol-related products.
    Animal welfare All companies that:
    • are involved in commercial animal husbandry for the purpose of food production, including breeding, raising, and slaughtering pork, veal, poultry, and beef, as well as dairy and egg farm operators; or
    • All companies that conduct animal testing for non-pharmaceutical products such as cosmetic, personal care, and household cleaning products.
    Civilian firearms All companies:
    • classified as “Producer” of firearms and small arms ammunitions for civilian markets. It does not include companies that cater to the military, government, and law enforcement markets; or
    • deriving 5% or more revenue from the distribution (wholesale or retail) of firearms or small arms ammunition intended for civilian use.
    Conventional weapons All companies deriving:
    • 5% or more revenue from the production of conventional weapons; or
    • 15% or more aggregate revenue from weapons systems, components, and support systems and services.
    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:
    • 5% or more revenue from ownership of operation of gambling-related business activities; or
    • 15% or more aggregate revenue from gambling-related business activities.
    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:
    • manufacture nuclear warheads and/or whole nuclear missiles; or
    • manufacture components that were developed or are significantly modified for exclusive use in nuclear weapons (warheads and missiles); or
    • manufacture or assemble delivery platforms that were developed or significantly modified for the exclusive delivery of nuclear weapons; or
    • provide auxiliary services related to nuclear weapons (such as training, research and maintenance); or
    • manufacture components that were not developed or not significantly modified for exclusive use in nuclear weapons (warheads and missiles) but can be used in nuclear weapons; or
    • manufacture or assemble delivery platforms that were not developed or not significantly modified for the exclusive delivery of nuclear weapons but have the capability to deliver nuclear weapons; or
    • manufacture components for nuclear-exclusive delivery platforms.
    Tobacco All companies:
    • classified as a “Producer”; or
    • deriving 5% or more aggregate revenue from the production, distribution, retail and supply of tobacco-related products.
    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”.

    Documents & insights

    ESGIAU
    /blog/sustainability/