Examining the Exclusions: SPDR STOXX Europe 600 SRI UCITS ETF
When looking to return to equities after the significant falls this year, many ETF investors have continued to choose an ESG fund for their core equity allocation. SPDR STOXX Europe 600 SRI UCITS ETF tracks the performance of the popular STOXX Europe 600 SRI Index with its broad range of norms- and product-based exclusions and best-in-class ESG scores.
Here we answer some of the most common questions we get from clients on exclusions.
The STOXX SRI (Socially Responsible Investing) methodology applies a set of emissions intensity, compliance, involvement and ESG performance screens.
Stocks are deemed ineligible for inclusion in the index, and thus the SPDR fund, based on three areas:
Sustainalytics' Global Standards Screening assessment
In order to integrate best-in-class ESG scoring, the remaining securities are ranked in descending order of their ESG scores within each of the 11 ICB industry groups. The top-ranking securities in each group are selected until the number of securities reaches one third of the number in the parent index.
Selected exclusions by category
1.Why is London Stock Exchange excluded?
The LSE* is not deemed illegible for inclusion; neither its business of facilitating access to capital markets or corporate behaviour are controversial. However, the stock is excluded because it does not rank high enough in the financials group to be among the top 200 most relatively attractive ESG stocks.
2.Given the SRI credentials, why aren’t all energy stocks excluded?
Looking at the fund under ICB sector classification (which STOXX favours), there are three small energy holdings, including Vestas Wind Energy*. These are all renewable energy companies and do not fall into any of the exclusion categories covering fossil fuels. Interestingly, under the better-known GICS sector classification (used by S&P and MSCI), these stocks would be classified as industrials.
3.What is the difference between SRI and ESG Methodology?
SRI indices are designed to screen out the highest carbon emitters and track the best ESG performers. This methodology can produce a larger tracking error to benchmarks than equivalent ESG indices, and has led to lower performance in the past 12 months, although with less volatility in terms of realised annualised volatility (standard deviation of daily returns).
Excluding the likes of Shell* and BP* gives a much stronger case against fossil fuels than alternative ESG methodologies. This has produced heavy underweights to the energy and utilities sectors with a hit to performance in the past 12 months.
4.What is the difference between SRI and climate methodology?
The STOXX Europe 600 SRI Index methodology cuts total carbon emissions in its index by 80%, a key environmental measure, but it is not necessarily just a climate strategy.
Climate strategies, such as the PAB indices, are also designed to avoid constituents with the highest carbon emissions, aimed at investors who want to decarbonise their portfolios. They have the most popular screens of controversial weapons and tobacco, as well as fossil fuel production and extraction, but their range of exclusions is not as wide as SRI.
The differences can be seen by the STOXX Europe 600 SRI Index’s lower weighting in manufacturing and utility companies and higher exposure to pharmaceutical and household good producers than a European climate PAB index.
To learn more about the SPDR STOXX Europe 600 SRI UCITS ETF, and to view its performance history, please visit its fund page.
* Inclusion or exclusion of this stock should not be taken as a recommendation to buy or sell.
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IL EST POSSIBLE QUE LES SPDR ETF DE SSGA NE VOUS SOIENT PAS DISPONIBLES OU NE VOUS CONVIENNENT PAS. LES OPINIONS/INFORMATIONS PRÉSENTÉES SUR CE SITE NE SAURAIENT CONSTITUER UN CONSEIL EN INVESTISSEMENT OU UN CONSEIL D’ORDRE FINANCIER, JURIDIQUE, RÉGLEMENTAIRE, COMPTABLE OU FISCAL. EN CAS DE DOUTE, DEMANDEZ L'AVIS D'UN CONSEILLER INDÉPENDANT. LES INFORMATIONS ET OPINIONS PRÉSENTÉES SUR CE SITE NE SAURAIENT CONSTITUER UNE SOLLICITATION OU UNE OFFRE D’ACHAT OU DE VENTE DE PARTS DES FONDS OU DE TOUT AUTRE INSTRUMENT FINANCIER.
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Informations relatives au Mexique
Les informations figurant dans ce document ne constituent en aucun cas une offre de titres financiers et ne sauraient être considérées comme telles. Les Fonds mentionnés dans ce document ne sont et ne seront pas agréés en vertu de la Mexican Securities Market Law (Ley del Mercado de Valores). Ils ne peuvent faire l’objet d’aucune offre publique, pas plus qu’ils ne peuvent être vendus sur le territoire des États-Unis d’Amérique. Il est interdit de distribuer publiquement les documents informatifs liés aux fonds susmentionnés sur le territoire du Mexique, tout comme il est interdit d’y échanger des parts des Fonds.
OPCVM SPDR ETFs
SPDR ETFs Europe I Plc et SSGA SPDR ETFs Europe II Plc émettent les ETF SPDR et sont une société d’investissement à capital variable et à compartiments assortis d’une responsabilité séparée. La Société est structurée comme un Organisme de placement collectif en valeurs mobilières (OPCVM) conformément à la législation irlandaise et agréée en qualité d’OPCVM par la Banque centrale d’Irlande.
Ce site web s'adresse uniquement aux investisseurs qualifiés, tels que définis par l'article 10 (3) et (3ter), de la loi suisse sur les placements collectifs de capitaux (« LPCC ») et son ordonnance d'application. Certains fonds peuvent ne pas être enregistrés pour la distribution publique auprès de l'Autorité fédérale de surveillance des marchés financiers (FINMA), qui agit en tant qu'autorité de surveillance en matière de fonds de placement, ou peuvent ne pas avoir désigné de représentant et d'agent payeur suisse. Pour les fonds qui ont désigné un représentant et un agent payeur, les investisseurs intéressés peuvent obtenir les prospectus, les statuts, les DICI ainsi que les derniers rapports annuels ou semestriels disponibles gratuitement auprès du représentant et agent payeur suisse, State Street Bank International GmbH, Munich, succursale de Zurich, Beethovenstrasse 19, 8027 Zurich, ou sur le site https://www.ssga.com, ainsi qu’auprès du distributeur principal en Suisse, State Street Global Advisors AG (« SSGA AG »), Beethovenstrasse 19, 8027 Zurich. Pour les fonds qui n'ont pas désigné de représentant ni d'agent payeur en Suisse, veuillez noter que les fonds sont ouverts aux investisseurs qualifiés, à l'exclusion des investisseurs qualifiés bénéficiant d'une clause d'exclusion (« opting-out ») conformément à l'art. 5(1) de la loi fédérale suisse sur les services financiers (« FinSA ») et sans aucune relation de gestion de portefeuille ou de conseil avec un intermédiaire financier conformément à l'article 10(3ter) de la LPCC (« Investisseurs Qualifiés Exclus »). Pour obtenir plus d'informations et les documents relatifs au fonds, veuillez contacter SSGA AG.
Vous devez vous procurer et lire le prospectus et le document d'information clé pour l'investisseur (DICI) de SPDR avant d’investir. Ils sont disponibles en cliquant ici. Ceux-ci comprennent des informations complémentaires concernant les fonds SPDR, y compris des informations relatives aux coûts, aux risques et où les fonds sont autorisés à la vente.
ETFs SPDR américains
La distribution des intérêts des ETF SPDR américains en Suisse sera exclusivement faite à des investisseurs qualifiés et s'adressera uniquement à ceux-ci, tels que définis par l'article 10(3) et (3ter), de la loi suisse sur les placements collectifs de capitaux (« LPCC ») et son ordonnance d'application. Par conséquent, les ETF SPDR américains ne sont pas enregistrés pour une distribution publique auprès de l'Autorité fédérale de surveillance des marchés financiers (« FINMA »). Certains fonds peuvent ne pas avoir désigné de représentant et d'agent payeur suisse. Pour les fonds avec un représentant et un agent payeur suisse, les investisseurs intéressés peuvent obtenir les documents juridiques liés aux ETFs SPDR américains gratuitement auprès du représentant et agent payeur suisse, State Street Bank International GmbH, Munich, succursale de Zurich, Beethovenstrasse 19, 8027 Zurich, ou sur le site https://www.ssga.com, ainsi qu’auprès du distributeur principal en Suisse, State Street Global Advisors AG (« SSGA AG »), Beethovenstrasse 19, 8027 Zurich. Pour les fonds sans représentant ni agent payeur suisse, veuillez noter que les fonds sont ouverts aux investisseurs qualifiés, à l'exclusion des investisseurs qualifiés ayant une clause d’exclusion (« opting-out ») conformément à l'art. 5(1) de la loi fédérale suisse sur les services financiers (« FinSA ») et sans relation de gestion de portefeuille ou de conseil avec un intermédiaire financier conformément à l'article 10 (3ter) de la LPCC (« Investisseurs Qualifiés Exclus »). Pour obtenir plus d'informations et les documents relatifs au fonds, veuillez contacter SSGA AG.
Avant d’investir, il convient d’analyser les objectifs d’investissement, les risques, les frais et les dépenses des fonds. Pour obtenir un prospectus contenant ces informations et d'autres, téléchargez le ici ou adressez-vous à votre conseiller financier. Lisez-le attentivement avant d'investir.