BlackRock expands ESG range with ETF launch
The asset manager BlackRock has increased its sustainable ETF range with the launch of the 11th ESG ETF in Europe.
The iShares MSCI World SRI UCITS ETF (SUSW) tracks the MSCI World SRI Select index, which especifically excludes those companies involved in severe controversies or in military weapons, civilian firearms, tobacco, alcohol, nuclear power, gambling, adult entertainment and genetically modified organisms.
The fund delivers exposure to global stock markets with a particular focus on companies with the strongest ESG ratings. These ratings assess how companies are exposed to and manage idiosyncratic risks including strikes, factory shutdowns or lawsuits, among others.
Manuela Sperandeo, head of specialist sales of iShares EMEA, said: “We consistently hear from our clients that they are looking more closely at improving the ESG and carbon profile of their investments, which they acknowledge helps manage risk in their portfolios.
“This ETF is the latest addition to a range that allows investors to express their active investment decisions on a broad range of markets and geographies, quickly and cost-effectively. Importantly, the SRI index tracked by this ETF has also outperformed its parent index since inception with comparable volatility, which means investors would have not forfeited returns.”
Managing director and head of MSCI Index in EMEA Deborah Yang, added: “Over recent years we have seen a substantial increase in demand from investors to incorporate values and ESG principles into their investment processes, and we currently had some $62bn (€52.73) globally in assets benchmarked to MSCI ESG indexes as of the end of June 2017.”