Vanguard ESG Developed Asia Pacific All Cap UCITS ETF (Dist)

Issuer: Vanguard

Asset Class: Equity

TER: 17bps

Trading Currency: USD

Pays Income: False

Listing Date: 13 Oct 2022

Ticker: V3PL

ISIN: IE0008T6IUX0

This investment vehicle offers targeted exposure to the equity markets of developed countries within the Asia-Pacific region, while incorporating a robust Environmental, Social, and Governance (ESG) screening process. By tracking a specialized index, the fund invests across the entire market-capitalization spectrum, including large, mid, and small-cap companies. This all-cap approach provides a comprehensive representation of the investment opportunities in key developed markets such as Japan, Australia, South Korea, Hong Kong, and Singapore. The portfolio is constructed to mirror the performance of the regional market, but with specific ethical and sustainability-focused adjustments, making it a suitable core holding for investors seeking responsible exposure to this dynamic economic area.

The fund's ESG methodology is based on a set of clear, values-driven exclusion criteria. It systematically removes companies that derive significant revenue from non-renewable energy sources like fossil fuels, as well as those involved in controversial sectors such as adult entertainment, alcohol, gambling, tobacco, and weapons manufacturing. Furthermore, the screening process extends to corporate conduct, excluding businesses that fail to meet the standards of the United Nations Global Compact regarding human rights, labour practices, environmental protection, and anti-corruption. This dual approach of excluding certain industries and penalizing poor corporate behavior ensures the portfolio is aligned with the principles of sustainable and responsible investing, aiming to avoid companies with high ESG-related risks.