FlexShares Launches FEEM: Offering ESG Exposure to Emerging Markets
2 min readFlexShares Exchange Traded Cash has introduced a new ESG ETF focused on local climate with exposure to rising marketplaces. This is an space with constrained solution offerings to date.
The FlexShares ESG & Local weather Emerging Marketplaces Main Index Fund (FEEM), detailed on the NYSE on April 21, is the newest addition to FlexShares’ current local weather suite introduced very last September, which presently incorporates U.S. massive cap equities, created marketplaces ex-U.S. equities, and two mounted-cash flow ETFs.
“The addition of the FlexShares ESG & Local weather Emerging Marketplaces Core Index Fund will complement FlexShares’ present weather money, supplying investors a various set of core sustainability solutions they can use for publicity across the world,” Crystal McClenthen, Head of Merchandise Strategy, Cash and Managed Accounts at NTAM, claims in a statement.
FEEM aligns with the broader suite’s system, which seeks to help investors enhance their portfolio’s all round ESG rating and lessen carbon risk when preserving core fairness exposure, according to a statement from the agency.
The full local climate suite makes use of the Northern Have confidence in ESG Vector Rating, which is designed to rank companies based mostly on their management of and exposure to product ESG metrics and to align with the SASB Standards, as perfectly as a carbon hazard ranking to hedge ESG-relevant threats and capitalize on sustainable options, in accordance to a assertion from the agency.
“The mix of our ESG Vector Rating and carbon risk score results in a transparent and steady strategy to ESG measurement, which is specially essential when it comes to figuring out alternatives in emerging marketplaces,” McClenthen claims in a assertion.
The ESG Vector Score methodology, formulated by Northern Have faith in Asset Management, seeks to detect ESG-connected business difficulties most probably to impression a company’s monetary efficiency and a portfolio’s investment decision return. This is merged with a exclusive emphasis on carbon risk.
In partnership with Institutional Shareholder Expert services (ISS), each and every organization is examined to decide its latest carbon emissions, its initiatives to reduce its carbon footprint, and its potential publicity to carbon-possibility relative to other companies in its industry, in accordance to a statement from the firm.
FEEM targets a reduction in mixture carbon emissions and carbon reserves relative to its dad or mum index even though also concentrating on an total enhancement in its carbon danger ranking.
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