BNP Paribas AM Launches ESG-Focused Equal Weight ETF
BNP Paribas Asset Management (BNPP AM) has launched its first equally weighted exchange-traded fund (ETF), expanding its sustainable investing product range. The new fund, BNP Paribas Easy MSCI World Equal Weight Select UCITS ETF (WEWEU), tracks an ESG-screened version of the MSCI World index.
The ETF is currently listed on Euronext Paris and Deutsche Börse, with plans to list soon on Borsa Italiana and the SIX Swiss Exchange. It comes with a competitive ongoing charges ratio of 0.20%, aligning with similar products on the market.
WEWEU follows the MSCI World Equal Weighted Ex Business Involvement Screens Select Index, which applies environmental, social, and governance (ESG) exclusions to companies in the broader MSCI World index. The screening process filters out firms involved in controversial sectors such as weapons, tobacco, and fossil fuels. From the remaining pool, securities are selected in descending order of ESG score until the target number of constituents is reached. Each chosen company is then equally weighted, providing greater diversification compared to traditional market-cap-weighted indices.
Read More: Top 8 ESG Mutual Funds for Responsible Investors in 2023
The ETF is classified under Article 8 of the Sustainable Finance Disclosure Regulation (SFDR), meaning it promotes environmental or social characteristics, making it suitable for investors with a sustainability focus.
According to Miriam Breen, head of business development for ETFs and index funds at BNPP AM UK and Ireland, the new product answers growing demand for equal-weight strategies. “This new product answers to the growing investor interest in equal-weight strategies, which have historically proven to be a relevant alternative to capital-weighted indices,” she noted.
The launch comes as competition intensifies in this niche. Invesco was first to market in Europe with an MSCI World equal-weight ETF in 2023, and VanEck offers a similar ESG-screened product, both with the same 0.20% total expense ratio (TER).
In addition to WEWEU, BNP Paribas Asset Management is preparing to introduce a European defense ETF, further signaling its intent to broaden its thematic and ESG-aligned ETF lineup.
Also Read: ESG Thematic Funds: A Comprehensive Guide for Sustainable Investing
With this launch, BNPP AM reinforces its commitment to sustainable investing, offering cost-effective, diversified exposure to global equities for ESG-conscious investors.
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Source: ETF Stream
