BNP Paribas Easy MSCI Japan Minimum Tear ESG Filtered UCITS ETF

Issuer: BNP Paribas Asset Management

Asset Class: Equity

TER: 20

Trading Currency: USD

Pays Income: False

Listing Date: 08 Oct 2025

Ticker: EJAP

ISIN: LU2800573128

This investment product provides targeted exposure to the Japanese equity market by tracking the MSCI Japan Minimum Tear ESG Filtered Index. The core objective is to offer a defensive strategy that aims to minimize portfolio volatility while simultaneously incorporating stringent environmental, social, and governance (ESG) criteria. It is designed for investors who wish to participate in the Japanese market but are concerned about potential drawdowns and market fluctuations. By focusing on a minimum volatility approach, the underlying portfolio is constructed to be less sensitive to broad market turbulence compared to traditional market-capitalization-weighted Japanese indices.

The index methodology begins with the constituents of the broad MSCI Japan Index and employs a sophisticated optimization process. This quantitative strategy selects and weights securities to achieve the lowest possible ex-ante (forecasted) volatility, subject to a series of constraints. Crucially, this process is integrated with an ESG framework. The 'ESG Filtered' aspect involves excluding companies with significant involvement in controversial sectors and applying screens that result in a significant reduction in the portfolio's carbon footprint and an overall improvement in its ESG score relative to the parent index. The result is a thoughtfully constructed portfolio that seeks to provide a smoother return profile and aligns with sustainable investment principles.

This fund is well-suited as a core holding for risk-averse investors seeking stable, long-term exposure to Japan, or as a tactical allocation for those looking to de-risk their equity exposure during periods of uncertainty. The dual focus on risk reduction and sustainability makes it a compelling option for investors who do not want to compromise on their values while navigating one of the world's largest developed economies. The strategy's emphasis on capital preservation characteristics, combined with the potential for growth from Japanese equities, offers a balanced approach to single-country investing.