Paris-based investment manager Ossiam has launched what it claims is the first ESG exchange-traded fund (ETF) to use machine-learning techniques.
The Ossiam World ESG Machine-Learning UCITS ETF will use a machine-learning algorithm that ranks companies according to their ESG and financial potential.
The selection of companies will be fine-tuned over time as the algorithm learns from the data.
Antonio Celeste, Ossiam’s head of ESG business development, said: “A clear trend has emerged of large equity investors putting ESG at the core of their allocation decisions.
“At the same time, progress in artificial intelligence and the increased depth and quality of data, has enabled us to improve investment processes by incorporating the valuable information embedded in large amounts of ESG data.”
The Ireland-domiciled ETF will be available in January and will have a total expense ratio of 0.65%.
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