Unicredit Lists ESG Factor ETFs in Europe
July 30 2019 - 4:55AM
Dow Jones News
By Dieter Holger
UniCredit SpA (UCG.MI) has listed two exchange-traded funds in
Frankfurt that use environmental, social and governance investing
as well as factor investing.
The UC iStoxx ESG-X Multi Factor UCITS ETF (ECBF) and UC Stoxx
ESG-X Minimum Variance UCITS ETF (ECBV) track indexes based on the
EURO STOXX Index, UniCredit said Tuesday. Both ETFs charge fees of
0.40% annually or $40 for every $10,000 invested.
They screen out European companies involved with certain
weapons, tobacco, thermal coal and nuclear power, and businesses
that don't follow the United Nations Global Compact principles on
human and labor rights, the environment, ethics and
anticorruption.
The ETFs also apply a factor approach, which groups stocks with
related characteristics that are expected to behave similarly under
certain market conditions. Factor investing has grown more popular
as investors have moved assets out of actively-managed ETFs into
passive strategies. Around $800 billion is now invested in factor
ETFs, up from $600 billion two years ago, according to market
research firm Morningstar.
"In order to meet ESG investment criteria, asset owners need to
look for solutions beyond the traditional market-cap-weighted
index," said Vincenzo Spadaro, global head of institutional equity
derivatives at UniCredit.
UniCredit has only recently started listing ESG ETFs. Last year,
the Italian bank listed its first ESG ETF: the UC MSCI European
Green Bond EUR UCITS ETF, which delivers access to Europe's
expanding green bond market.
Write to Dieter Holger at dieter.holger@dowjones.com;
@dieterholger
(END) Dow Jones Newswires
July 30, 2019 05:40 ET (09:40 GMT)
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