ESG, the FlexShares domestic ESG ETF, follows the STOXX USA ESG Impact Index. Most of the fund’s holdings are large-cap stocks and over 36% are designated as value stocks. As FlexShares notes, companies and investors benefit as ESG dialogue increases.
“Robust interest from investors pushes companies to disclose more, which leads to even greater investor interest and more disclosure,” said the issuer. “We believe this circular engagement between investors and companies, as they identify, disclose and monitor KPIs, is immensely important when it comes to steering a ﬁrm’s management towards constructive ESG behaviors that may also boost its share price.”
ESGG, the global counterpart to the ESG ETF, also tilts toward value stocks. The fund allocates over 56% of its weight to the U.S. while Japan and the U.K. combine for 17%.
For more information on socially responsible investment strategies, visit our socially responsible ETFs category.