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

by | Oct 13, 2022

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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 Name Strategy Domicile OCF[4]
Vanguard ESG Emerging Markets All Cap UCITS ETF  Index Ireland 0.24%
Vanguard ESG Developed Asia Pacific All Cap UCITS ETF Index Ireland 0.17%
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%

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