BNP Paribas Asset Management has expanded its ESG ETF suite with actively managed US and Japan equity strategies, ETF Stream can reveal.
The BNP Paribas Easy Sustainable US UCITS ETF and BNP Paribas Easy Sustainable Japan UCITS ETF listed on Euronext Paris with a total expense ratio (TER) of 0.20%. Both ETFs will be listed on Deutsche Boerse later this month.
Both ETFs apply the firm’s ‘active beta’ methodology, which does not seek to generate outperformance but rather applies active management to exclude companies quickly, in line with its proprietary ESG methodology and evolving ESG regulations.
Both are categorised Article 8 under the Sustainable Finance Disclosure Regulation (SFDR), classified Category 1 by the Autorité des marchés financiers (AMF) and both apply Paris-Aligned Benchmark (PAB) exclusion criteria.
The US strategy aims to retain less than 2% tracking error versus the S&P 500 while maintaining at least a 45% sustainable investment threshold.
The Japan ETF looks to achieve under 2% tracking error versus the MSCI Japan index while maintaining at least a 55% sustainable investment threshold.
Marie-Sophie Pastant, head of index and ETF strategies, portfolio management, at BNPP AM commented: "Our aim is to develop a new segment of equity funds aiming to be as close as possible to mainstream benchmarks, with ex-ante tracking error between 1% to 1.5%, while integrating solid ESG features developed by BNPP AM."
Lorraine Sereyjol-Garros (pictured), global head of development for ETFs and index funds at BNPP AM added: “Offering ETFs that combine a recognised ESG approach, high sustainable investment and ambitious decarbonisation target, while providing the benefits of index-based investing, including a reasonable tracking error, will answer the increasing demand from institutional clients and distributors to integrate ESG factors in their portfolio.”
The double debut marks the first equity entrants to the firm’s active ETF roster after ETF Stream revealed the launch of the BNP Paribas Easy Sustainable EUR Government Bond UCITS ETF (BJLM) and the BNP Paribas Easy Sustainable EUR Corporate Bond UCITS ETF (BJLN) in February this year.
