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Vanguard launches new ESG offerings

Vanguard Australia has launched a new Australian shares ETF with an ESG focus, adding to its range of ethical investment options.

The Vanguard Ethically Conscious Australian Shares Fund and ETF will invest in approximately 240 ASX listed shares with a series of ethical screens.

The product will remove companies with significant business activities involving fossil fuels, alcohol, tobacco, gambling, military weapons and civilian firearms, nuclear power and adult entertainment.

The fund and ETF will also exclude shares in companies with conduct that contravenes the principles of the UN Global Compact pertaining to labour rights, human rights, environment and anti-corruption.

"In this range, we are focused on delivering funds that screen for the evolving needs and preferences of ESG investors while staying true to the core principles that underpin all of our products: clear goals, broad diversification, low costs and a long-term view," Vanguard Australia head of product Evan Reedman said.

"We've seen a growing demand from both our financial advisor and retail clients for responsible and ethical products, demonstrated by consistent growth in our existing Ethically Conscious funds, which were launched in September 2018."

The fund is benchmarked to the custom-built FTSE Australia 300 Choice Index and seeks to track the return of this index before taking into account management fees, expenses and tax.

The new products bring the total number of fund offerings for Vanguard Australia to 83, including 30 ETFs.

"Investors want funds that are consistent with their values without having to make the trade off with performance or their financial goals, and we continue to seek ways to deliver on that need," Reedman said.

"These products, when used in combination with our existing ethically conscious funds, enable investors to build a well-diversified global ESG portfolio that benefits from consistent, transparent methodology and values."

Read more: ESGETFVanguard AustraliaEvan ReedmanASXChoice IndexFTSE AustraliaUN Global CompactVanguard Ethically Conscious Australian Shares Fund
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