Investing in Broad Equity Sustainable ETFs
SPDR ETFs offers both US and European broad equity exposures which use sustainability screens to exclude companies which are involved in controversial industries. These ETFs may provide a transparent, efficient and cost-effective way to create greener portfolios.
Broad Equity Sustainability ETFs
SPDR S&P 500 ESG Leaders UCITS ETF
The S&P 500® ESG Leaders Index is a best-in-class ESG index that is designed to measure the performance of securities with stronger than average ESG characteristics while excluding controversial business activities with negative social or environmental impacts. The S&P 500® ESG leaders index was constructed to provide a risk/return profile similar to that of the S&P 500, while greatly improving ESG characteristics. The index targets 50% of the float-adjusted market capitalization of each GICS® industry group within the S&P 500 using the S&P Global ESG scores for constituent selection. A significant amount of exclusions are also made based on criteria detailed in the methodology.
SPDR® S&P® 400 U.S. Mid Cap Leaders UCITS ETF
The S&P 400® Screened & Scored Leaders Index brings the rigor of the S&P 500® Screened & Scored Leaders Index to track the performance of US mid-cap securities with stronger than average sustainability scores, while excluding controversial business activities. The S&P 400® Screened & Scored Leaders Index was constructed to provide a profile similar to that of the S&P 400, while improving sustainable investment characteristics. The index targets the top 50% of the float-adjusted market capitalization of each GICS® industry group within the S&P 400 using the S&P Global ESG Score for constituent selection. Again, a significant number of exclusions are also made based on criteria detailed in the methodology.
SPDR STOXX Europe 600 SRI UCITS ETF
The SPDR STOXX Europe 600 SRI UCITS ETF aims to track the performance of the popular STOXX Europe 600 Index after a set of emission intensity, compliance, involvement and ESG performance screens are applied. Companies that rank in the highest 10% in terms of their emission intensities are not eligible for selection. Thereafter, exclusion filters screen out companies for compliance based on the Sustainalytics Global Standards Screening assessment and involvement in controversial weapons, tobacco, alcohol, adult entertainment, gambling, weapons (small arms and military contracting), thermal coal, oil and gas, and nuclear power. In order to integrate best-in-class scoring, the remaining securities are ranked in descending order of their ESG scores within each of the 11 ICB Industry groups. The STOXX SRI indices select the top-ranking securities in each group until the number of selected securities reaches a third of the number in the parent index. These exclusion screens and best-in-class ranking result in an index of 200 stocks.
The SPDR MSCI Resilient Future UCITS ETF
The SPDR MSCI Resilient Future UCITS ETF (Acc) offers exposure to companies whose business model delivers transition towards a more sustainable global economy by reducing the likelihood of crossing some irreversible environmental tipping points. The fund invests in companies delivering climate mitigation – clean energy or energy mitigation; climate-change adaptation, such as responsible farming; or who are supporting natural-capital protection, such as sustainable water, pollution prevention and control, or recycling. The fund tracks MSCI’s best-in-class MSCI ACWI IMI Resilient Future Index, which select constituents associated with the development of products or the provision of services focused on these environmental-opportunity subthemes, which may offer a path to a resilient future.
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