VanEck Vectors MSCI International Sustainable Equity ETF ESGI
Fund description: ESGI gives investors exposure to a diversified portfolio of sustainable international companies listed on exchanges in developed markets around the world (ex Australia). ESGI aims to provide investment returns before fees and other costs which track the performance of the Index.
Index description: The MSCI World ex Australia ex Fossil Fuel Select SRI and Low Carbon Capped Index aims to represent the performance of a diversified portfolio of international companies that have high Environmental, Social and Governance (ESG) performance by:
- Excluding companies that own any fossil fuel reserves or derive revenue from mining thermal coal or from oil and gas related activities;
- Excluding companies whose business activities are not socially responsible investments (SRI);
- Targeting ESG leaders in each sector; and
- Excluding high carbon emitters.
Management style: Replication
Country of domicile: Australia
as at 22-Jan-21
Bloomberg index codeNA716517
Index providerMSCI Inc.
Number of holdings1176
2The date the ETF was seeded prior to quotation on ASX.
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.
as at 22-Jan-21
Dividend frequency1 each year
Management costs p.a.0.55%
- Investment management team »
- Market Announcements
- ESGI Fact Sheet
- New Research: The case for taking a sustainable approach
- ESGI Fund Flyer
- ESG and Carbon Metrics
The Responsible Investment Certification Program does not constitute financial product advice. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Appropriate professional advice should be sought prior to making an investment decision. RIAA does not hold an Australian Financial Services Licence.
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:
- Excluding companies that own any fossil fuel reserves or derive revenue from mining thermal coal or from oil and gas related activites;
- Exclusion of companies whose business activities are not socially responsible investments (SRI);
- Inclusion of only the leading ESG performers in each secotor; 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
A four step process is followed to determine the Index from the eligible universe which is the securities in the MSCI World ex Australia Index (Parent Index).
- Fossil fuels exclusion
All companies that own any fossil fuel reserves or derive revenue from mining thermal coal or from oil and gas related activities are excluded.
- Screening of SRI and ESG companies
From the securities remaining after step 1, those whose businesses are involved in or exposed to the following activities are excluded:
- Military weapons
- Civilian firearms
- Nuclear power
- Adult entertainment
- Genetically modified organisms
- Applying the carbon emitter screen
The remaining companies from step 2 are then ranked by carbon emission intensity and the top 20% 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.
- Component weighting and capping
The remaining securities are then weighted by their Free Float Market Capitalisation subject to a 5% weighting cap.
For full details of the methodology go to www.msci.com/msci-indexes-for-australian-investors under Methodologies.
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.
Bloomberg index tickerNA716517
|HOME DEPOT INC||
|NOVO NORDISK A/S-B||
|SCHNEIDER ELECTRIC SE||
|Top ten total (%)||29.40|
Index country weightings (%) as of 31-Dec-20
Index sector weightings (%) as at 31-Dec-20
Source: MSCI. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI's express written consent.