Last week, Deutsche Bank rolled out its first ETF to use a socially responsible approach. The Xtrackers MSCI EAFE ESG Leaders Equity ETF (EASG) tracks an index derived from the popular MSCI EAFE Index.
The fund comes with an expense ratio of 0.14% and lists on the NYSE Arca.
EASG’s underlying index targets companies in the parent index that outperform their peers when it comes to environmental, social and governance performance. It relies on MSCI’s ESG research in the areas of ESG ratings, ESG controversies and business involvement to evaluate potential constituents.
Companies must meet minimum thresholds in the ratings and controversies categories, and must not be involved in businesses in the areas of alcohol, tobacco, gambling, nuclear power and certain types of weapons, according to the prospectus.
Selected companies are weighted by market capitalization. As of mid-July, EASG’s index included 459 components with market capitalizations of $1.5 billion or higher. Japan was the largest country in the index, with a weighting of 23.2%, the document says.
Contact Heather Bell at [email protected]