Pax World Management, investment adviser to Pax World Funds, has launched ESG Shares, the first family of exchange-traded funds devoted exclusively to a sustainable investing approach.
The ETFs will track indexes that integrate environmental, social and governance factors into index design and construction.
ESG Shares North America Sustainability Index ETF, launched today, seeks to track the performance of the FTSE KLD North America Sustainability Index, a broadly diversified, sector-neutral index of American and Canadian companies with superior ESG performance as rated by KLD Research & Analytics.
ESG Shares FTSE Environmental Technologies (ET50) Index ETF, which Pax World intends to launch on 21 May, seeks to track the performance of the FTSE ET50 Index, comprised of the 50 largest pure-play environmental companies globally by full market capitalisation. The companies in the index have a primary business focus in the areas of alternative energy and energy efficiency, water technologies and pollution control and waste technologies and resource management.
ESG Shares Europe Asia Pacific Sustainability Index ETF, which Pax World intends to launch on 25 May, seeks to track the performance of the FTSE KLD Europe Asia Pacific Sustainability Index, a broadly diversified, sector-neutral index of companies in Europe and Asia-Pacific with superior ESG performance as rated by KLD Research & Analytics.
“We are very excited to be offering the first family of ETFs focused exclusively on sustainability indexes constructed by our partners, KLD Indexes and FTSE,” says Pax World president and chief executive Joe Keefe. “Now there are ETF solutions for investors who seek to capture the potential returns associated with superior ESG or sustainability performance.”
“Due to increased demand from retail and institutional investors, we created the North America and Europe Asia Pacific Sustainability indexes to satisfy the need for broadly diversified portfolios of global companies that have demonstrated commitment to high standards of environmental, social and governance performance,” adds Thomas Kuh, head of KLD Indexes at RiskMetrics Group. “We are pleased to be working with Pax World, a recognised leader in the field of Sustainable Investing, to bring these innovative ETFs to the marketplace.”