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Vanguard launches two new environmental, social and governance focused exchange-traded funds

Vanguard today launched two new environmental, social and governance focused exchange-traded funds. The Vanguard ESG Emerging Markets All Cap UCITS ETF and the Vanguard ESG Developed Asia Pacific 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 Börse, Borsa Italiana, Six Swiss Exchange and Euronext Amsterdam.

The Vanguard ESG Emerging Markets All Cap UCITS ETF tracks the FTSE Emerging All Cap Choice Index. The ETF has an ongoing charges figure (“OCF”) of 0.24%.

The Vanguard ESG Developed Asia Pacific All Cap UCITS ETF tracks the FTSE Developed Asia Pacific All Cap Choice Index. The ETF has an ongoing charges figure (“OCF”) of 0.17%.

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. Vanguard’s 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.

Fong Yee Chan, head of ESG strategy, UK and Europe, said: “Exclusionary ESG index products enable investors to incorporate their ESG preferences into their investments, while retaining the key advantages of index funds: diversification, transparency and low costs. Interest in ESG index investing continues to rise with European industry net cash flow doubling last year.” [2]

The new ETFs are managed by 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[3].

With the addition of the new products, Vanguard’s line-up of funds for environmentally and socially conscious investors consists of the funds and ETFs below. These are available through Vanguard UK Personal Investor (www.vanguardinvestor.co.uk), retail investment platforms and via financial advisers and wholesale intermediaries.

Fund NameStrategyDomicileOCF[4]
Vanguard ESG Emerging Markets All Cap UCITS ETF IndexIreland0.24%
Vanguard ESG Developed Asia Pacific All Cap UCITS ETFIndexIreland0.17%
Vanguard ESG Developed Europe All Cap UCITS ETFIndexIreland0.12%
Vanguard ESG North America All Cap UCITS ETFIndexIreland0.12%
Vanguard ESG Global All Cap UCITS ETFIndexIreland0.24%
Vanguard ESG Developed World All Cap Equity Index Fund (UK)IndexU.K.0.20%
Vanguard ESG Developed World All Cap Equity Index FundIndexIreland0.20%
Vanguard ESG Emerging Markets All Cap Equity Index FundIndexIreland0.25%
Vanguard SRI European Stock FundIndexIreland0.14%
Vanguard ESG Global Corporate Bond UCITS ETFIndexIreland0.15%
Vanguard SustainableLife 40-50% Equity FundActiveU.K.0.48%
Vanguard SustainableLife 60-70% Equity FundActiveU.K.0.48%
Vanguard SustainableLife 80-90% Equity FundActiveU.K.0.48%
Vanguard Global Sustainable Equity FundActiveU.K.0.48%

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