BlackRock has launched an exchange-traded fund (ETF) that invests in companies across developed and emerging markets that promote diversity practices.
The ETF has been launched in collaboration with Thomson Reuters and tracks an index of the top 100 countries globally with the “most diverse and inclusive workplaces”.
Twenty-four metrics are used to rank the 100 companies, which are drawn from over 2,000 globally.
Brian Deese, head of sustainable investing at BlackRock, said: “The increasing availability of corporate sustainability data, as well as advancement in technology, has made it possible to better measure and understand metrics, such as inclusion and diversity, from an investment perspective.”
Rachel Lord, a regional head including Europe, at BlackRock, said: “We know that diverse teams make better decisions, and this is ultimately good for investors. We are launching this fund at a time when a spotlight is firmly on companies to show what they are doing to improve diversity of their workforce, and as investors demand new funds to express specific preferences within their portfolios.”
The fund carries a total expense ratio of 0.25% and the index it tracks is the Thomson Reuters Global Large/Mid Diversity and Inclusion ex. Controversial Weapons Equal Weight Total Return Index.
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