VanEck MSCI International Sustainable Equity ETF
VanEck MSCI International Sustainable Equity ETF
as at 30-Nov-23
Total Net Assets$164.83M
Dividend Frequency1 each year
Management fee (p.a.)0.55%
Number of securities140
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.
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
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 with any tie to fossil fuels (thermal coal, oil and gas);
- 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:
|Adult entertainment||All companies:
|Animal welfare||All companies that:
|Civilian firearms||All companies:
|Conventional weapons||All companies deriving:
|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), as defined by the methodology of the MSCI Global Ex-Controversial Weapons Indexes available at https://www.msci.com/index-methodology.|
|Fossil fuels||All companies with any tie to fossil fuels (thermal coal, oil and gas), in particular reserve ownership, related revenues and power generation.|
|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.|
|Nuclear weapons||All companies that:
|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.
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.
Holdings & allocations
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”.