BNP Paribas introduces smart beta European low carbon ETF

Jan 17th, 2017 | By | Category: Equities

BNP Paribas Easy has launched the BNP Paribas Easy Low Carbon 100 Europe UCITS ETF (LCEU) on Deutsche Boerse’s Xetra and Frankfurt exchanges, providing access to European equities from firms displaying a high degree of environmental concern within their business activities.

BNP Paribas introduces smart beta European low carbon ETF

The BNP Paribas Easy Low Carbon 100 Europe UCITS ETF tracks 100 European equities from environmentally-friendly firms, weighted by the inverse of the firms’ carbon emission levels.

The smart beta ETF tracks the Low Carbon 100 Europe Index. The underlying methodology initially excludes firms from controversial industries such as tobacco and firearms, and, from the remaining pool of eligible constituents selects 100 firms with high energy efficiency, global warming policy transparency and commitment to efficient and “green” energy activities, as determined through analysis conducted by the International Academy for Energy.

Constituents are weighted by the inverse of their carbon emission levels to further boost the ESG score of the index.

Using back-tested data, the index is up 11.1% per annum over the past five years.

As of 17 January 2017, the ETF’s largest country exposures are to the UK (27.1%), France (16.5%), Germany (12.5%), Spain (12.0%) and Switzerland (10.0%). The largest sector exposures are to financials (20.7%), consumer goods (18.8%), industrials (15.0%), and health care (14.3%) and the largest single holding is Diageo (3.5%).

The fund trades in euros and has a total expense ratio of 0.60%.

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