Swedish ETF issuer Xact has changed the index underlying its $1.3bn Xact Norden 30 UCITS ETF in order to enhance the sustainability profile of the fund.

The new index provides an ESG screen for Nordic equities.
The ETF, which is listed on Stockholm Stock Exchange, has ceased tracking the VINX30 Index and is now linked to the Handelsbanken Nordic ESG Index.
To reflect the change, the fund has been renamed the Xact Norden UCITS ETF.
The old index consists of the 30 largest and most heavily traded stocks, weighted by free-float market capitalization, that are listed in Sweden, Denmark, or Finland.
The new index also covers the 30 largest stocks listed across the three Nordic exchanges but additionally incorporates an ESG (environmental, social, and governance) screen that seeks to exclude companies not adhering to sustainability principles.
The methodology avoids companies with operations in the following sectors: fossil fuels, oil sands, nuclear power, military equipment, pornography, tobacco, gambling, alcohol, and cannabis.
The remaining companies are then graded with ISS-Oekom’s ESG methodology which takes into account sector-specific criteria. At least 75% of the companies in the index are expected to be ranked as “Prime” (best-in-class) by ISS-Oekom.
Index reconstitution and rebalancing occur quarterly.
Novo Nordisk is by far the largest index constituent with a weight of 16.0%, followed by Investor (5.7%), Ericsson (4.8%), and Nokia (4.6%).
The fund’s expense ratio, 0.15%, remains unchanged.