GRNV
VanEck MSCI Australian Sustainable Equity ETF
GRNV
VanEck MSCI Australian Sustainable Equity ETF
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NAV$29.80
as at 13-Aug-24 -
Total Net Assets$170.31M
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Dividend Frequency2 each year
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Management fee (p.a.)0.35%
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Number of securities80
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Inception Date27-Apr-16
Overview
Fund Description
Our Australian sustainable ETF, GRNV gives investors access to a diversified portfolio of sustainable Australian companies selected on the basis of in-depth analysis by world leading research agency MSCI ESG Research. Our Australian sustainable ETF aims to provide investment returns, before fees and other costs, which track the performance of the Index.
Key benefits
Australian equity portfolio incorporating investor values and beliefs
True-to-label Australian sustainable equity ETF encompassing both values-based and environmental, social and governance (ESG) investing.
A focus on ethical standards through positive and negative screens
Screening for fossil fuels, human rights controversies and socially responsible investments (SRI) combined with ESG leadership.
State-of-the-art ESG leadership approach
Leveraging MSCI's leadership, resources and its ESG data metrics.
Index Key points
Underlying Index
MSCI Australia IMI Select SRI Screened Index
Summary of Index methodology
The Index is constructed using the following steps
- The eligible universe of securities is defined as the securities in the MSCI Australia Domestic IMI Index.
- Securities are screened for exclusion based on the following business activities:
Business activities |
Exclusion |
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Adult entertainment | All companies:
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Alcohol | All companies:
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Animal welfare | All companies that:
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Civilian firearms | All companies:
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Conventional weapons | All companies deriving:
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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.
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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:
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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:
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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. |
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.
- Only companies with ESG controversy scores of 2 or above are eligible for inclusion (based on MSCI’s scale of 0 to 10). Companies are required to have maintained the score for 4 quarterly rebalances before becoming eligible for inclusion.
- Only companies with human controversy scores of 5 or above are eligible for inclusion (based on MSCI’s scale of 0 to 10). Companies are required to have maintained the score for 4 quarterly rebalances before becoming eligible for inclusion.
- Only companies with ESG rating ‘A’, ‘AA’ and ‘AAA’ are included (based on MSCI’s scale from ‘AAA’ to ‘CCC’). Companies are required to have maintained the rating for 6 quarterly rebalances before becoming eligible for inclusion.
- Companies with free float adjusted market capitalisation less than or equal to USD 750m (new constituents) or less than or equal to USD 500m (existing constituents) are excluded.
- The remaining companies are then weighted by their free float market capitalisation subject to a 5% individual weighting cap.
Key risks
An investment in our Australian sustainable ETF carries risks associated with: financial markets generally, individual company management, industry sectors, fund operations and tracking an index. See the VanEck MSCI Australian 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”.