Vanguard today launches two new environmental, social and governance focused exchange traded funds. The Vanguard ESG Developed Europe All Cap UCITS ETF and the Vanguard ESG North America All Cap UCITS ETF are designed to serve as core building blocks for ESG-aware portfolios. The ETFs have been listed on the London Stock Exchange (LSE), Deutsche Boerse, Borsa Italiana, Six Swiss Exchange, and Euronext Amsterdam.
The Vanguard ESG Developed Europe All Cap UCITS ETF tracks the FTSE Developed Europe All Cap Choice Index, providing exposure to large, mid and small-cap stocks in developed European countries. The ETF has an ongoing charges figure (“OCF”) of 0.12%.
The Vanguard ESG North America All Cap UCITS ETF tracks the FTSE North America All Cap Choice Index, providing exposure to large, mid, and small-cap stocks in the United States of America and Canada. The ETF has an OCF of 0.12%.
Vanguard’s exclusionary ESG funds track benchmarks that are derived from commonly used and available market-capitalisation-weighted indices, provided by independent benchmark providers, which give a weighted exposure to large, medium and small companies in the relevant target markets. Our benchmark providers then apply transparent screening criteria[1] to avoid or reduce exposure to certain industries that many investors are concerned about, such as firearms, tobacco or fossil fuels.
Exclusionary funds offer many of the advantages of conventional index funds, including broad exposure to a market or market segment, which enables them to serve as building blocks for a broadly diversified portfolio.
Fong Yee Chan, head of ESG strategy, UK and Europe, said:
“Over the past couple of years, we have diligently developed our ESG range to enable investors to choose the products that best align with their preferences alongside their investment goals.
“Today’s launches are the start of the next stage in that commitment; building out our suite of “building block” ESG ETFs, designed to help investors construct ESG ETF portfolios for the long-term, at a low cost.”
The two new ETFs are managed by a Vanguard’s Equity Index Group, which manages more than $4.8 trillion in assets across the globe, and draws on the diverse perspectives and knowledge of 57 team members.[2]
With the addition of the new product, Vanguard’s line-up of funds for environmentally and socially conscious investors consists of the funds and ETFs below. The funds set out below are available through Vanguard UK Personal Investor (www.vanguardinvestor.co.uk), retail investment platforms and via financial advisers and wholesale intermediaries.
| Fund Name | Strategy | Domicile | OCF[3] |
| Vanguard ESG Developed Europe All Cap UCITS ETF | Index | Ireland | 0.12% |
| Vanguard ESG North America All Cap UCITS ETF | Index | Ireland | 0.12% |
| Vanguard ESG Global All Cap UCITS ETF | Index | Ireland | 0.24% |
| Vanguard ESG Developed World All Cap Equity Index Fund (UK) | Index | U.K. | 0.20% |
| Vanguard ESG Developed World All Cap Equity Index Fund | Index | Ireland | 0.20% |
| Vanguard ESG Emerging Markets All Cap Equity Index Fund | Index | Ireland | 0.25% |
| Vanguard SRI European Stock Fund | Index | Ireland | 0.14% |
| Vanguard ESG Global Corporate Bond UCITS ETF | Index | Ireland | 0.15% |
| Vanguard SustainableLife 40-50% Equity Fund | Active | U.K. | 0.48% |
| Vanguard SustainableLife 60-70% Equity Fund | Active | U.K. | 0.48% |
| Vanguard SustainableLife 80-90% Equity Fund | Active | U.K. | 0.48% |
| Vanguard Global Sustainable Equity Fund | Active | U.K. | 0.48% |
