Alternative Investments/ESG: BlackRock Unveils STOXX-50 ETF With ESG Focus

The new Eurozone equity ETF from BlackRock is listed on the Deutsche Borse.

BlackRock has expanded its sustainable investing offerings with the iShares EURO STOXX 50 ESG UCITS ETF (ES50), a eurozone equity ETF listed on the Deutsche Boerse with a TER of 0.10%. The ETF tracks the EURO STOXX 50 index, including 50 large European companies that meet STOXX’s ESG criteria.

The benchmark excludes companies involved in controversial activities like weapons, coal, oil, military contracting, small arms, and tobacco. Companies are also screened based on Sustainalytics Global Standards, controversy rating, and ESG risk rating, with the bottom 20% based on ESG scores automatically excluded. Replacements for excluded firms come from eligible Euro Stoxx companies with higher ESG scores in the same ICB supersector. ES50 is categorized under Article 8 of SFDR. (ETF STREAM)

The ETF has significant exposure to French, German, and Dutch securities, with financials, information technology, industrials, and consumer discretionary sectors dominating its holdings.

BlackRock aims to offer more sustainable options for investors, with earlier launches of the iShares MSCI World Quality Factor ESG UCITS ETF (IWQE) and iShares MSCI ACWI SRI UCITS ETF (SAWI).

Meanwhile, MSCI has implemented a ‘fast-exit’ rule, reducing the time to remove violator companies from its sustainable indices to 45 days, impacting 41 BlackRock ETFs with $70.5 billion AUM.

Related Story:  BlackRock In Move To Attract Younger Savers To Its ETFs

Image by Mystic Art Design from Pixabay

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