BNP Paribas AM Launches ESG Equal Weight ETF Amid Rising Investor Demand

BNP Paribas Asset Management (BNPP AM) introduced its first equally weighted exchange-traded fund (ETF) as part of the roll-out of its portfolio of sustainable investment products. The new fund, BNP Paribas Easy MSCI World Equal Weight Select UCITS ETF (ticker: WEWEU), provides investors with exposure to a diversified global equity portfolio consistent with environmental, social, and governance (ESG) considerations.

The ETF tracks the MSCI World Equal Weighted Ex Business Involvement Screens Select Index, which is derived from the broader MSCI World index but with ESG exclusion. They exclude tobacco, weapons, and oil and energy companies. From the remaining eligible securities, the index selects constituents from the lowest to highest ESG scores until a certain number of constituents. Each of the selected companies is subsequently assigned an equal weight, as opposed to by market capitalisation weighting as would otherwise be undertaken.

The fund is listed on Euronext Paris and Deutsche Börse, with intentions to grow distribution to Borsa Italiana and SIX Swiss Exchange. It boasts a competitive ongoing charges ratio (OCR) of 0.20%, placing it alongside other equal-weighted ESG ETFs on the continent.

This ETF falls under Article 8 of the EU's Sustainable Finance Disclosure Regulation (SFDR), meaning that it promotes environmental or social aspects without having a sustainable investment objective. This classification makes it particularly appropriate for those investors adopting responsible investment methods.

The launch places BNPP AM on a competitive footing in the ETF market. Invesco already rolled out a similar MSCI World equal-weighted ETF in the European market in 2023. VanEck also has a similar ESG-screened product, both of the same 0.20% total expense ratio.

BNP Paribas Asset Management is also planning to roll out an ETF for European defence, reflecting its progression towards thematic and ESG-focused investment products. The latest launch reflects the company's overall dedication to sustainable finance as well as its drive to provide investors with diversified and competitively priced ESG investing solutions outside core indexing.

Source: ETF Stream