Alternative Investments/ESG: FlexShares Launches EM Equities ETF With ESG Focus
The FlexShares ESG & Climate Emerging Markets Core Index Fund (FEEM), was listed on the NYSE on April 21.
Northern Trust’s FlexShares Exchange Traded Funds has introduced a new sustainable and low carbon ETF investing in emerging market (EM) equities. The new ETF, the FlexShares ESG & Climate Emerging Markets Core Index Fund (FEEM), is an expansion of FlexShares’ bouquet of climate-friendly ETFs launched in September and including U.S. large-cap equities, developed markets ex-U.S. equities, and two fixed-income ETFs. (ETF Trends)
ESG & Climate Emerging Markets Core Index Fund (FEEM)
The ETF seeks to enhance an investor’s portfolio with an ESG and low carbon angle while offering exposure to fast-growing equities in EM.
Listed on the NYSEARCA, the fund features an expense ratio of 0.19%.
“The addition of the FlexShares ESG & Climate Emerging Markets Core Index Fund will complement FlexShares’ existing climate funds, providing investors a diverse set of core sustainability products they can use for exposure across the globe,” Crystal McClenthen, Head of Product Strategy, Funds and Managed Accounts at NTAM, said in a statement.
The ETF tracks a proprietary index that begins its construction process from Northern Trust’s traditional market-cap-weighted benchmark for large and mid-cap stocks listed in developing countries.
The ETF, and its counterparts in the climate suite, utilize the Northern Trust ESG Vector Score, which is designed to rank companies based on their management of and exposure to material ESG metrics and to align with the SASB Standards, as well as a carbon risk rating to hedge ESG-related risks and capitalize on sustainable opportunities.
“The combination of our ESG Vector Score and carbon risk rating creates a transparent and consistent approach to ESG measurement, which is particularly important when it comes to identifying opportunities in emerging markets,” added McClenthen.
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