Vanguard expands ESG equity range in dual launch

James Baxter-Derrington
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The two products will follow relevant benchmarks from the FTSE Global Choice index
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The two products will follow relevant benchmarks from the FTSE Global Choice index

Vanguard has launched two ESG equity index funds, which seek to provide investors with access to global markets at a low cost, with world and emerging market exposures.

The Vanguard ESG Developed World All Cap Equity Index fund and Vanguard ESG Emerging Markets All Cap Equity Index fund will follow relevant benchmarks from the FTSE Global Choice, which utilise negative screens for non-renewable energy, weapons and so-called "vice products."

Companies that fail to meet the UN Global Compact Principles on labour rights, human rights, the environment and anti-corruption are also excluded.

Our clients have a wide variety of humanitarian, ethical, environmental and social concerns, and many want to put their money to work in a way that aligns with their values."

Designed as "core equity building blocks" for investors, the fund providing global exposure will be available for retail investors with an ongoing charges figure of 0.2%, while emerging markets exposure is offered for an OCF of 0.25%.

Matthew Piro, head of portfolio review department, Europe, said: "Our clients have a wide variety of humanitarian, ethical, environmental and social concerns, and many want to put their money to work in a way that aligns with their values, while still meeting their investment goals.

"As such, we have designed these funds to help ESG-conscious, long-term investors put together high quality, diversified equity index portfolios at a low cost.

"Vanguard will continue to seek ways to deliver long-term ESG offerings to meet the evolving needs of investors."

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