Paris-based smart beta investment manager Ossiam has launched an exchange-traded fund (ETF) which incorporates environmental, social and governance (ESG) criteria.
The fund is an ESG version of the existing Ossiam Shiller Barclays CAPE US Sector Value ETF.
The Ossiam ESG Low-Carbon Shiller Barclays CAPE US Sector Ucits ETF was this week listed on the London Stock Exchange following a launch earlier this month on the Xetra exchange of Deutsche Börse.
Ossiam says that the enhanced strategy was developed in response to feedback from existing investors looking to improve their climate impact and ESG-related exposure.
The new ETF, which uses physical replication, has a total expense ratio (TER) of 0.85% and is the first Ossiam ETF to use the ICAV (Irish Collective Asset Management Vehicle) structure.
Ossiam chief executive Bruno Poulin said, “We expanded on our existing ETF with ESG and low-carbon criteria since they can play a significant part in creating long-term equity value and enhance the contribution of the Shiller CAPE ratio.
“We see the revised strategy as likely to deliver sustainable positive returns while meeting greater demand for investment funds satisfying ethical standards.”
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