Alexis Marinof, Head of Europe, WisdomTree.
The WisdomTree Global Sustainable Equity UCITS ETF (WSDG) has been listed on London Stock Exchange in US dollars (Ticker: WSDG LN) and pound sterling (WSEQ LN) as well as on Xetra in euros (WSDG GY).
The fund tracks the Solactive WisdomTree Global Sustainable Equity UCITS Index, which replicates a strategy developed in collaboration with Irish Life Investment Managers, currently managing over $53 billion in responsible investments.
The index selects constituents from a universe of large and mid-cap stocks in developed market countries. Initially, it excludes firms operating in controversial industries and those with negative externalities through robust ‘Do No Significant Harm’ and ‘Good Governance’ screens.
Subsequently, the methodology targets firms contributing to social and/or environmental objectives. Companies are considered to positively contribute if they derive significant revenues from activities aligned with the EU Taxonomy for sustainable activities or the UN 2030 agenda for sustainable development.
The framework encompasses firms that make positive contributions across a range of globally significant areas, including affordable and clean energy, climate action, the circular economy, clean water and sanitation, life below water, life on land, zero hunger, good health and well-being, quality education, reduced inequalities, and sustainable cities and communities.
The methodology also includes companies with carbon emissions reduction targets approved by the Science Based Targets initiative (SBTi) and those with best-in-class risk management metrics related to gender, environmental, and social factors.
The weight of each security in the index is determined by an algorithm that emphasizes the proportion of revenue derived from business activities aligned with achieving the SDGs and EU Taxonomy, while also minimizing tracking error relative to the initial universe.
The ETF comes with an expense ratio of 0.29% and is classified as an Article 9 product under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).
Alexis Marinof, Head of Europe at WisdomTree, commented: “Until now, our sustainable investing solutions have leveraged our expertise and expert partnerships in commodities and thematic equities, providing access to the metals and companies linked to the energy transition.
“Today, in collaboration with Irish Life Investment Managers, we have launched our first core sustainable equity ETF. The new Article 9 ETF provides a differentiated approach to global developed market equities by integrating 11 of the 17 SDGs in the investment process.”
The fund represents WisdomTree’s third Article 9 ETF, following the launches of the WisdomTree Renewable Energy UCITS ETF (WRNW LN) and the WisdomTree Recycling Decarbonisation UCITS ETF (WRCY LN).