ESGI
VanEck MSCI International Sustainable Equity ETF
ESGI
VanEck MSCI International Sustainable Equity ETF
-
NAV$35.20
as at 30-Aug-24 -
Total Net Assets$192.40M
-
Dividend Frequency1 each year
-
Management fee (p.a.)0.55%
-
Number of securities161
-
Inception Date06-Mar-18
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 methodologyThe Index is constructed using the following steps
- The eligible universe of securities is defined as the securities in the MSCI World ex Australia Index.
- Securities are screened for exclusion based on the following business activities:
Business activities | Exclusion |
---|---|
Adult entertainment | All companies deriving 5% or more aggregate gross revenue from the production, distribution and retail of adult entertainment materials. |
Alcohol | All companies deriving 5% or more aggregate gross revenue from ownership of operation of gambling-related business activities. |
Animal welfare | All companies that:
|
Civilian firearms | All companies:
|
Conventional weapons | All companies deriving:
|
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.
|
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:
|
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:
|
Tobacco | All companies:
|
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. |
The effectiveness of an exclusionary screen is limited by the accuracy, completeness and accessibility of information and disclosure the relevant entity 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.
You may have differing views, opinions and understanding of the meaning of the terminology used in this section and PDS, to VanEck or MSCI or their third party providers (including ESG research providers), and therefore your expectations of permitted investments may be different to the actual investments of the Fund.
Lending/financing activities are not considered to be an industry tie by MSCI as part the index methodology.
The remaining securities are then weighted by their Free Float Market Capitalisation subject to a 5% weighting cap.- 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. 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.
- Only companies with ESG controversy scores of 4 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.
- 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. - 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 nor definition to assess companies, ETFs or other funds and currently, Australia does not have an ESG or sustainability-related investment taxonomy. This means the approach used to determine ESG ratings varies significantly across research bodies, index companies 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 of 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”.