Vanguard ESG Emerging Markets All Cap UCITS ETF (Acc)

Issuer: Vanguard

Asset Class: Equity

TER: 24bps

Trading Currency: USD

Pays Income: False

Listing Date: 13 Oct 2022

Ticker: V3MA

ISIN: IE000KPJJWM6

This actively managed fund offers exposure to the dynamic growth potential of emerging market economies through an all-cap equity strategy. By investing in a diversified portfolio of large, mid, and small-capitalisation companies, it aims to capture opportunities across the full spectrum of the market. The active management approach allows for flexibility in portfolio construction, seeking to identify companies with strong long-term growth prospects that may be overlooked by passive index-tracking strategies. This approach is designed for investors seeking long-term capital appreciation and who are willing to accept the higher risk profile associated with emerging markets.

A core component of the investment process is the integration of environmental, social, and governance (ESG) criteria. The fund's managers employ a proprietary screening process to identify companies that demonstrate strong sustainability practices while excluding those involved in industries deemed harmful, such as fossil fuels, controversial weapons, and tobacco. This ESG overlay does not simply avoid laggards but actively seeks to invest in companies poised to benefit from the transition to a more sustainable global economy. The strategy combines fundamental analysis with ESG considerations, aiming to generate competitive returns while aligning with the values of socially conscious investors.

This product is well-suited for investors with a long-term horizon and a higher risk tolerance who want to incorporate both emerging market growth and responsible investing principles into their portfolio. The accumulating share class structure automatically reinvests any dividends received, which can enhance the power of compounding returns over time, making it a potentially attractive option for building wealth over an extended period.