VanEck Vectors Sustainable World Equal Weight UCITS ETF
| Issuer: Van Eck |
| Asset Class: Equity |
| TER: 20bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 18 Jan 2019 |
| Ticker: TSGB |
| ISIN: NL0010408704 |
This investment vehicle offers a unique approach to global equity investing by providing exposure to a diversified portfolio of companies from developed markets worldwide. Its core strategy is built on an equal-weighting methodology, which sets it apart from traditional market-capitalization-weighted funds. By assigning the same weight to each constituent company at rebalancing, the fund avoids over-concentration in a handful of mega-cap stocks. This approach ensures broader diversification across all included companies, regardless of their size, and can potentially enhance performance by capturing growth from a wider array of firms and mitigating the impact of downturns in any single large company or sector.
A key feature of this fund is its strong commitment to sustainability. The underlying index employs a rigorous screening process based on environmental, social, and governance (ESG) criteria. It systematically excludes companies with significant involvement in controversial sectors such as tobacco, thermal coal, and certain weapons. Furthermore, companies that fail to adhere to the principles of the UN Global Compact are also filtered out. This dual approach of applying both negative exclusions and norms-based screening ensures that the portfolio is aligned with the principles of responsible investing, making it an attractive option for investors looking to integrate their values into their investment decisions.
This fund is designed for investors seeking a core global equity holding that combines the benefits of a smart-beta strategy with an ethical overlay. The equal-weighting can help manage risk by reducing security-specific concentration, while the sustainability screen targets companies with better ESG profiles. This strategy may appeal to long-term investors aiming for sustainable capital growth through a balanced and responsible investment in a broad selection of global companies.
