Ossiam has listed the active Ossiam ESG Low Carbon Shiller Barclays CAPE US Sector UCITS ETF on Xetra….
Name: Ossiam ESG Low Carbon Shiller Barclays CAPE US Sector UCITS ETF
Asset class: equity index ETF
Ongoing charges p.a.: 0.85 percent
Distribution policy: accumulating
The Ossiam ESG Low Carbon Shiller Barclays CAPE® US Sector UCITS ETF aims to deliver a risk/return profile similar to the existing Shiller Barclays CAPE® US Sector Value index, but with a significantly reduced carbon footprint and improved ESG profile.
The enhanced strategy starts by removing companies in specific businesses, such as controversial weapons, tobacco and coal, companies that undergo severe controversies, and companies in breach of the UN Global Compact Ten Principles. The strategy incorporates publicly-available exclusion lists offered by large, highly-regarded Scandinavian institutional investors.
From the remaining stocks, the strategy selects the portfolio that mimics the financial behaviour of the Barclays Shiller CAPE® US Sector Value Net TR Index and minimises the expected tracking error, while reducing its carbon footprint, keeping the same sector exposure as the original index.
The carbon footprint reduction is three-fold: 40% reduction in the total greenhouse gas emissions (GHG), 40% reduction in the total potential GHG emissions from reserves (i.e. GHG emission linked to fossil proven reserves that are not yet burned but will be in the future, when extracted from the ground) and 40% reduction in the carbon intensity of the strategy compared to the original index.