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ESGIAU VanEck MSCI International Sustainable Equity ETF Please read important disclosure Close important disclosure false

    • ESGI
    VanEck MSCI International Sustainable Equity ETF

    ESGI
    VanEck MSCI International Sustainable Equity ETF

    • NAV
      $34.23

      as at 13-Aug-24
    • Total Net Assets
      $187.09M
    • Dividend Frequency
      1 each year
    • Management fee (p.a.)
      0.55%
    • Number of securities
      161
    • 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

    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 gross revenue from the production of adult entertainment materials; or
    • 15% or more aggregate gross revenue from the production, distribution and retail of adult entertainment materials.  
    Alcohol All companies:
    • that create, fabricate, produce or manufacture alcohol; or
    • deriving 5% or more aggregate gross 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:
    • that create, fabricate, produce or manufacture 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 gross 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 gross revenue from the production of conventional weapons; or
    • 15% or more aggregate gross revenue from weapons systems, components, and support systems and services.  
    Controversial weapons

    All companies with an involvement in the production of cluster bombs, landmines, depleted uranium weapons, chemical and biological weapons, blinding lasers, non-detectable fragments and incendiary weapons.

    • Cluster Bombs
      • cluster bombs and munitions, or the essential components of these products.
    • Landmines
      • anti‐personnel landmines, anti‐vehicle landmines, or the essential components of these products.
    • Depleted Uranium Weapons
      • depleted uranium weapons and armor.
    • Chemical and Biological Weapons
      • chemical and biological weapons, or the essential components of these products.
    • Blinding Laser Weapons
      • weapons utilising laser technology to cause permanent blindness.
    • Non-Detectable Fragments
      • weapons that use non-detectable fragments to inflict injury.
    • Incendiary Weapons (White Phosphorus)
      • weapons using white phosphorus.
    For more details, refer to the methodology of the MSCI Global Ex-Controversial Weapons Indexes available in the documents section below.  
    Fossil fuels

    All companies with an industry tie to fossil fuels (thermal coal, oil and gas), in particular reserve ownership, related gross revenues and power generation. It does not flag companies providing evidence of owning Metallurgical Coal.

    MSCI refer to this screen as “Any Tie”, which 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 gross revenue from ownership of operation of gambling-related business activities; or
    • 15% or more aggregate gross revenue from gambling-related business activities.  
    Genetically modified organisms (GMO) All companies deriving 5% or more gross 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 an involvement in nuclear power as defined under MSCI’s “Nuclear Power – Any Tie” screen in 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:
    • that create, fabricate, produce or manufacture tobacco; or
    • deriving 5% or more aggregate gross 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.  

    It is important to note that the efficacy of a screen is only as good as a company’s disclosure and level of information it makes available or is willing to make available. There may be instances where the above screens may not exclude a company if data about the company is incomplete, inaccurate or unavailable.

    Lending/financing activities are not considered to be an industry tie by MSCI as part the index methodology.  

    1. 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.
    2. 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.
    3. 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.

    An investment in our international sustainable ETF carries risks associated with: ASX trading time differences, financial markets generally, individual company management, industry sectors, foreign currency, country or sector concentration, political, regulatory and tax risks, fund operations and tracking an index. See the VanEck MSCI International Sustainable Equity ETF PDS and TMD for more details.

    There is no universal ESG criteria to assess companies, ETFs or other funds around the world. This means the approach used to determine what is a ‘good’ or ‘bad’ ESG rating varies significantly across research bodies and investment managers, ranging from superficial applications of ESG metrics to more comprehensive approaches. There is the risk that an investor’s views and opinions on sustainability or ESG might differ to that of the index methodology which the Fund aims to track or that of VanEck. It is important that an investor considers the PDS, target market determination and supporting disclosures to determine if the Fund aligns with their values and is right for them.  

    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/
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