Investments  

BlackRock launches socially responsible ETFs

BlackRock launches socially responsible ETFs

BlackRock has launched two exchange-traded funds that give investors access to socially-responsible investments.

The new ETFs, which will be added to the group’s iShare range, track indices that consist of companies with MSCI environmental, social and governance ratings levels of at least BB.

The indices assess companies on 37 key environmental, social and governance factors, including carbon emissions and business ethics, and limiting exposure to activities involving alcohol, tobacco, gambling, firearms, nuclear power, adult entertainment and genetically modified organisms.

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The iShares Sustainable MSCI Emerging Markets tracks the MSCI Emerging Markets SRI index, which includes large and mid-cap equities across 23 emerging market countries.

It has a yearly charge of 0.35 per cent.

The iShares Sustainable MSCI US SRI Ucits ETF tracks the MSCI US SRI index, which includes large and mid-cap companies in the US.

It has a yearly charge of 0.3 per cent.

Adviser verdict

Dan Farrow, director of SBN Wealth Management, said: “This may be another one of the many thousands of ETFs that get seed funded and end up being run with a few million pounds of assets.

“This is a niche area, but mainstream clients want positive performance and aren’t too concerned if the companies within their portfolio are destroying the earth responsibly or irresponsibly.”

katherine.denham@ft.com