Hop on the ESG Bandwagon With These 3 ETFs

The environmental, social and governance (ESG) investing phenomenon has proven its mettle with strong performance amid the COVID-19 pandemic. That said, there’s still room on a bandwagon that can only continue to get larger, but here are three ETFs investors can start with.

1. SPDR MSCI EAFE Fossil Fuel Free ETF (EFAX): seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the MSCI EAFE ex Fossil Fuels Index. Under normal market conditions, the fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index and in depositary receipts based on securities comprising the index. The index is designed to measure the performance of companies in the MSCI EAFE Index that are “fossil fuel reserves free,” as determined by the screening methodology used by the index.
2. SPDR MSCI ACWI Low Carbon Target ETF (LOWC): seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the MSCI ACWI Low Carbon Target Index. The fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index and in depositary receipts based on securities comprising the index. The index is designed to address two dimensions of carbon exposure – carbon emissions and fossil fuel reserves, expressed as potential emissions.
3. SPDR Bloomberg SASB Corporate Bond ESG Select ETF (RBND): seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Bloomberg SASB ®US Corporate ESG Ex-Controversies Select Index that tracks investment grade corporate bonds issued by companies that exhibit certain ESG characteristics. Normally, the fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index or in securities that the Adviser determines have economic characteristics that are substantially identical to the economic characteristics of the securities that comprise the index.

“As we witness the structural shift in our economies from tangible to intangible value drivers, we recognise that ESG considerations are becoming more important factors for companies,” State Street said in Accessing ESG Exposure with StateStreet Global Advisors & SPDR ETFs. “Whilst ESG investing is still in its early stages, we are committed to combining our financial data and analytics capabilities with our investment practitioner perspective to create a new generation of ESG solutions. We provide leading research, analytics and advisory for investors’ ESG needs across asset classes and investment styles.”

For more news and information, visit the ESG Channel.