Making an Impact With an ESG ETF
Grow with VanEck's ESG ETF Suite that provides the opportunity to invest in the future in responsible fashion. Contribute to the betterment of the investing space by investing into funds that screen out the bad actors of the markets.
Marketing Communication
Our Environmentally Conscious ESG ETFs
VanEck offers four regional ETFs that incorporate ESG-based measures into their selection:
VanEck Morningstar US ESG Wide Moat UCITS ETF
- Tracks the performance of the portfolio of relatively, attractively-priced US equities
- Companies with long-term competitive advantages according to Morningstar
Lower risk
Higher risk
Typically lower reward
Typically higher reward
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VanEck New China UCITS ETF
- Gain exposure to China’s New Economy
- Emerging middle class and the new digital generation to drive consumption
- ESG filter based on OWL ESG scores
Lower risk
Higher risk
Typically lower reward
Typically higher reward
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VanEck World Equal Weight Screened UCITS ETF
- Equally-weighted, diversified global portfolio
- ESG screening by ISS ESG excludes companies in violation of UNGC principles and producers of controversial weapons
Lower risk
Higher risk
Typically lower reward
Typically higher reward
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VanEck European Equal Weight Screened UCITS ETF
- Equally weighted, diversified exposure to European companies
- ESG Screened portfolio constructed in line with the UN Global Compact Principles
Lower risk
Higher risk
Typically lower reward
Typically higher reward
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What is ESG Investing?
- ESG is an acronym that stands for Environmental, Social and Governance.
- In finance it is often used to signal that a fund incorporates sustainability considerations into the investment process.
Environmental factors consider activities that have adverse impact on nature.
Examples:
- Greenhouse gas emissions
- Water pollution
- Hazardous waste
Social factors encompass various human and workers’ right violation, as well as activities negatively contributing to stakeholders’ quality of life.
Examples:
- Product safety
- Employee Health & safety
- Local community impact
Governance factors comprise breaches of accepted management standards, duties to shareholders, & involvement in corruption practices.
Examples:
- Money laundering
- Bribery
- Fair board practices
Sustainability Characteristics of These ESG Funds
Certain ESG considerations drive the selection of companies for VanEck’s ESG ETF range. ESG Screening allows for certain companies to be excluded from those VanEck funds.
ESG Risk
VanEck Morningstar US ESG Wide Moat UCITS ETF uses risk scoring and the following methods...
VanEck Morningstar US ESG Wide Moat UCITS ETF uses risk scoring and the following methods...
ESG Score
VanEck New China UCITS ETF incorporates the OWL ESG score to asses sustainability of constituent...
VanEck New China UCITS ETF incorporates the OWL ESG score to asses sustainability of constituent...
UN Global Compact
The VanEck World Equal Weight Screened UCITS ETF & VanEck European Equal Weight Screened UCITS ETF screen stocks for violations ...
The VanEck World Equal Weight Screened UCITS ETF & VanEck European Equal Weight Screened UCITS ETF screen stocks for violations ...
Main Risk Factors of an ESG ETF
Because all or a portion of the Fund are being invested in securities denominated in foreign currencies, China ETF's exposure to foreign currencies and changes in the value of foreign currencies versus the base currency may result in reduced returns for the Fund, and the value of certain foreign currencies may be subject to a high degree of fluctuation.
Investments in emerging market countries subjected to specific risks and securities are generally less liquid and less efficient and securities markets may be less well regulated. Specific risks may be heightened by currency fluctuations and exchange control; imposition of restrictions on the repatriation of funds or other assets; governmental interference; higher inflation; social, economic and political uncertainties. A further risk of investing in China ETF is that the assessment of Chinese financial reports by relevant regulators may not be adequate.
The securities of smaller companies may be more volatile and less liquid than the securities of large companies. Smaller companies, when compared with larger companies, may have a shorter history of operations, fewer financial resources, less competitive strength, may have a less diversified product line, may be more susceptible to market pressure and may have a smaller market for their securities. This is one of the risk factors of an ESG ETF.
The Fund may invest a relatively high percentage of its assets in a smaller number of issuers or may invest a larger proportion of its assets in a single issuer. As a result, the gains and losses on a single investment may have a greater impact on the Fund's Net Asset Value and may make the Fund more volatile than more diversified funds.
The value of an investment in an ESG ETF can be affected by exchange rate fluctuations. The price of the euro can rise against another currency in which an investment is denominated.
The value of the securities held by an ESG ETF may fall suddenly and unpredictably due to general market and economic conditions in markets in which issuers or securities held by the fund are active.
Please contact us for more information:
- Phone: +41 (0)44 562 40 65
- Email: [email protected]