Vanguard Ethically Conscious funds
Vanguard Australia has launched a series of environmental, social and governance (ESG) funds. The Vanguard Ethically Conscious International Shares Index Fund and the Vanguard Ethically Conscious Global Aggregate Bond Index Fund.
The international funds will exclude fossil fuel reserves, alcohol, tobacco, gambling, weapons, nuclear power and adult entertainment. Both funds will be available as hedged or unhedged options and both will also be available as index funds and exchange traded funds.
The Vanguard Ethically Conscious International Shares Index Fund tracks the FTSE Developed ex Australia ex Non-Renewable Energy/Vice Products/Weapons Index, which is a new index from FTSE and is part of its new FTSE Global Choice Index Series. It is a market capitalization weighted index that removes companies involved in fossil fuels, nuclear power, adult entertainment, alcohol, gambling, tobacco, and weapons.
The Vanguard Ethically Conscious International Shares Index Fund and ETF (ASX:VESG) will provide exposure to over 1,600 securities listed in major developed countries, at a low management expense ratio of 0.20 per cent and 0.18 per cent respectively.
The Vanguard Ethically Conscious Global Aggregate Bond Index Fund will track the Bloomberg Barclays MSCI Global Aggregate ex SRI Exclusions Index hedged to Australian dollars. It will have a management expense ratio of 0.28 per cent and 0.26 per cent for the ETF.
“We understand that some investors want products that allow them to achieve their investment objectives while also investing in line with their values. We are pleased to be offering ESG equities and fixed income funds that meet this need while maintaining the hallmarks of Vanguard funds, low cost and broad diversification,” Evan Reedman, Vanguard Australia's head of product and marketing said.
Millennials and female investors seeking ESG products: Q&A with FTSE Russell's Arisa Kishigami & Vanguard's Rachel White
FTSE Russell has launched a new range of ESG indices, the FTSE Global Choice Index Series, of which one index has been used by Vanguard for their new Vanguard Ethically Conscious Funds. Industry Moves speaks to FTSE Russell head of ESG Asia Pacific, Arisa Kishigami (L), and Vanguard product strategy manager Rachel White (R) about the inception of the indices and the funds and the increasing demand they are seeing from investors for funds that align with their values.