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Vanguard selects FTSE Russell indexes for two new US ESG ETFs

  • Vanguard US ETFs based on recently introduced FTSE Global Choice Index Series
  • Indexes enable investors to align their investment objectives with their values utilizing FTSE Russell’s global ESG index methodology
  • FTSE Global Choice Index Series uses clear and simple exclusion methodology to screen stocks according to social and environmental impacts

FTSE Russell today announced that Vanguard Investments has licensed two ESG indexes from the FTSE Global Choice Index Series to underlie two new Vanguard ESG ETFs. These new ETFs were introduced by Vanguard to clients earlier today.

Vanguard ESG U.S. Stock ETF will track the FTSE US All Cap Choice Index, a market cap weighted benchmark measuring large-, mid- and small-cap US stocks screened for specific environmental, social and governance (ESG) criteria. And Vanguard ESG International Stock ETF will track the FTSE Global All Cap ex US Choice Index, a market cap weighted benchmark measuring large-, mid- and small-cap stocks in developed and emerging markets screened for specific ESG criteria.

Tony Campos – Director, ESG Product Management, FTSE Russell:
“We are delighted to work with Vanguard to help design indexes that allow clients to align their investment objectives with their values. Our FTSE Global Choice Index Series helps meet the growing demand for integrating ESG preferences into investments and draws on our extensive experience in designing ESG indexes that account for social and environmental impacts.”

Matt Brancato, Head of Portfolio Review Group, The Vanguard Group:
“Through working with FTSE Russell, Vanguard is able to offer ESG-conscious investors low-cost access to a majority of US and international equity markets. Vanguard ESG U.S. Stock ETF and Vanguard ESG International Stock ETF can serve as core components of a portfolio for investors seeking to screen their portfolios for certain ESG criteria.”

The FTSE Global Choice Index Series uses a transparent, rules-based framework to apply values-based exclusions to broad-based FTSE Russell indexes. The Series uses negative screens to filter companies based on the impact of their products and conduct on society and the environment. FTSE Russell’s product-related screening criteria includes non-renewable energy, vice products and weapons manufacturers while its conduct-related screening criteria includes controversies and diversity practices.

Visit the website for more information on the FTSE Global Choices Index Series.

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For further information:

Global Media
Tim Benedict +1 917 582 0641

About FTSE Russell:
FTSE Russell is a leading global index provider creating and managing a wide range of indexes, data and analytic solutions to meet client needs across asset classes, style and strategies. Covering 98% of the investable market, FTSE Russell indexes offer a true picture of global markets, combined with the specialist knowledge gained from developing local benchmarks around the world.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $16 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create investment funds, ETFs, structured products and index-based derivatives. FTSE Russell indexes also provide clients with tools for asset allocation, investment strategy analysis and risk management.

A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on index innovation and customer partnership applying the highest industry standards and embracing the IOSCO Principles. FTSE Russell is wholly owned by London Stock Exchange Group.

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