Browsing: socially responsible ETF

The underlying constituents of the new 1nvest ETF, which will track the MSCI World SRI Select Reduced Fossil Fuels Index, are companies that mitigate risks posed by climate change and exhibit high levels of the environment, and social, and governance (ESG) performance.

According to an article published by the JSE on July 28, 2022, to qualify for inclusion in the index, companies are required to have an MSCI ESG rating of ‘A’ or above.

The ETF has an investment mandate that excludes companies in industries related to goods and services such as nuclear weapons, tobacco, civilian firearms, conventional weapons, alcohol, gambling, adult entertainment,   genetically modified organisms, thermal coal, and oil & gas.

Director of Capital Markets at the JSE, Valdene Reddy, said that the listing of the latest 1nvest ETF demonstrates the JSE’s commitment to remain a capital-raising platform of choice. As this segment grows, a listing on the JSE enables ETF issuers to attract investors that aim to diversify their portfolios, while fulfilling their ESG objectives.