iShares MSCI EMU ESG Screened ETF

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Broad ESG exposure

Great way for investors to gain a broad exposure to sin-stock excluded companies in the Economic and Monetary Union

Secular theme exposure

Offers the opportunity to ride growing trends as ESG becomes an integral part of society and the future investment landscape

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Attractive cost

Offers investors the opportunity to track a niche portfolio of securities for a low cost of 0.12%

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Tight tracker

Tight tracking ability to its benchmark, a favourable characteristic for ETF investors

The ETF

This fund is a passive index strategy, seeking to provide investors with a total return that reflects the returns of the MSCI EMU ESG Screened Index. It does this by investing in a portfolio of equity securities that, as far as possible and practicable, consists of the component securities of the benchmark index. The index is composed of companies from developed countries in Europe which form part of the Economic and Monetary Union (EMU).

The MSCI ESG Screened indexes use company research provided by MSCI ESG Research, assessments of controversies and business involvement information to enable relevant exclusions to be made. The benchmark screening process filters out companies that:

  • Are associated with controversial and/or nuclear weapons,
  • Are associated with civilian firearms
  • Are involved in tobacco
  • Derive their revenues from thermal coal or oil sands extraction
  • Are not compliant with UN Global Compact principles

As a result, around 15 companies are excluded from the parent MSCI EMU index. The remaining securities are then weighted by their market capitalisation.

Sin stock exclusions

Sin stocks refer to companies that engage or are associated with business activities deemed to be unethical or harmful in one form or another. This fund screens out companies with any exposure to Controversial Weapons, Nuclear Weapons, Tobacco, Thermal Coal, Oil Sands, UN Global Impact violators and Civilian Firearms. The proposition is best aimed at investors looking to screen out controversial business areas while maintaining a risk profile similar to that of other benchmarks. On top of this, the fund comes at an attractive cost of just 12bps. The fund is most weighted towards France (35%) and Germany (26%).

Example holdings

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Holding
What they do
SAP SE Widely renowned as one of the most sustainable software companies who provide enterprise software to help businesses manage operations. With stringent environmental policies and sustainable operations running data centres and buildings with 100% green energy, SAP are aiming to become carbon-neutral by 2025.
ASML Holding Produces advanced semi-conductor equipment. ASML are another renowned company in regard to ESG, with a core philosophy of helping to create the most efficient semiconductors at affordable prices, helping to accelerate the innovation curve across the globe.
Sanofi One of Europe’s largest pharmaceutical businesses. Their philosophy revolves around providing access to healthcare for the underserved, engaging with communities and creating a healthier planet.