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Published on 6/27/2018 in the Prospect News Green Finance Daily and Prospect News Structured Products Daily.

Vanguard adds ESG funds to track FTSE U.S., international indexes

By Susanna Moon

Chicago, June 27 – Vanguard said it has added two exchange-traded funds, the Vanguard ESG U.S. Stock ETF and Vanguard ESG International Stock ETF, in a preliminary registration statement with the Securities and Exchange Commission.

The Vanguard ESG U.S. Stock ETF aims to track the FTSE US All Cap Choice index, a market-cap weighted benchmark comprising large-, mid- and small-cap U.S. stocks screened on specific environmental, social and governance criteria.

Meanwhile, the Vanguard ESG International Stock ETF will use as the benchmark the FTSE Global All Cap ex US Choice index, a market-cap weighted benchmark comprising large-, mid- and small-cap stocks in developed and emerging international markets excluding the United States screened on specific environmental, social and governance criteria.

Vanguard’s equity index group will be the investment advisor for both funds.

The estimated expense ratios are 0.12% for the U.S. fund and 0.15% for the international fund.

The new funds are expected to begin trading in September.


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