Checking Under the Hood of SNPE | ETF Trends

The Xtrackers S&P 500 ESG ETF (SNPE) is an ideal core equity product for investors looking to integrate ESG screening into their portfolio.

SNPE was the first to offer exposure to S&P 500 stocks screened for environmental, social, and governance factors, according to VettaFi. SNPE excludes companies with disqualifying U.N. Global Compact scores and those involved with tobacco or controversial weapons. The fund targets the 75% with the highest ESG scores within each industry group of the S&P 500. The portfolio holdings are market-cap weighted but adjusted to maintain broadly similar sector exposure to the parent index. 

For ESG-oriented investors, SNPE can serve as a core U.S. equity ETF given it seeks out the relatively strong companies across the three pillars within each sector,” VettaFi head of research Todd Rosenbluth said. “While many think of ESG funds solely focused on climate, it goes much deeper.”

SNPE owns 309 of the stocks in the S&P 500 as of September 12, and its top holdings look — by design — very similar to the plain-vanilla index, with Apple Inc, Microsoft, Amazon, and Alphabet carrying the greatest weight. Some notable names are left out, including Tesla, Johnson & Johnson, and Berkshire Hathaway, according to VettaFi.

On an annual basis, SNPE’s holdings generated 29.2% more renewable electricity than the S&P 500 Index, according to DWS. The fund holdings are 51.3% lower water intensive than the S&P 500, and the proportion of women on the board level of the companies in the fund is 2.4% higher than the index.

Launched in 2019, SNPE has $764 million in assets under management. The fund has taken in $51 million in net inflows year to date, according to VettaFi.

SNPE has returned -2.58% over a one-month period, 5.64% over a three-month period, and -12.59% year to date, as of September 12, according to VettaFi.

SNPE is priced competitively; the fund charges a ten basis point expense ratio.

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