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BetaShares pulls Facebook from ETHI ETF


The Responsible Investment Committee (RIC) of the BetaShares Global Sustainability Leaders ETF (ASX: ETHI) has removed Facebook from its underlying index and so will no longer be in the ETF.

BetaShares writes that historically Facebook has qualified for inclusion in the Fund’s index on the basis of its strong global leadership on carbon emission metrics (which are nearly 80 per cent better than its industry peers) as well as its responsible advertising and other policies.
“However, the company has in recent times been the subject of a number of controversies and reputational issues, which the RIC has been monitoring on an ongoing basis.
“These issues include (but have not been limited to) the recent scandal involving data analysis company Cambridge Analytica’s use of personal data from 50 million Facebook users who did not agree to the use of their data.
“The combination of the recent serious data breach with other previously identified issues has caused the RIC to determine that Facebook is no longer eligible for continued inclusion in the index (and, as a consequence, in the ETF).”
BetaShares ETHI is the largest global ethical ETF traded on the ASX with AUD170 million in funds under management.  Facebook represented 3.9 per cent of the portfolio.
“As a provider of a true-to-label ethical ETF, we have been careful to ensure there is diligent and ongoing monitoring of the constituents of the fund, to ensure the ETF continues to meet its objectives and those of its investors,” says BetaShares’ Chief Executive, Alex Vynokur.

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