Ossiam is set to delist its ESG global equities Shiller ETF as the fund is no longer “economically viable”.
The Ossiam ESG Shiller Barclays CAPE Global Sector UCITS ETF (5HGU) will be delisted from the London Stock Exchange, Deutsche Boerse and SIX Swiss Exchange on 10 December.
In a shareholder notice, the asset manager said, it would close the ETF “given that the fund is no longer economically viable and that it is not expected that the NAV for the fund will increase to an extent that would make it viable again in the foreseeable future.”
Launched in 2023, 5HGU aims to outperform global equity markets by selecting developed market equities from the MSCI World index, with an ESG filter.
It then selects large and mid-cap companies that are part of the Shiller Barclays CAPE Global Sector Net TR index, constructed based on the cyclically adjusted price/earnings ratio (CAPE) developed by Professor Robert Shiller.
Ossiam saw $438.1m outflows across its range in Q3, the second lowest of all European ETF issuers, according to data from ETFbook.
ESG demand has continued to wane this year, with concerns sparked when Morningstar data revealed ESG ETF inflows fell a sharp 49% quarter-on-quarter in Q1 2024.
Elsewhere, Ossiam closed its machine learning and risk-weighted enhanced commodity ETFs due to declining assets in 2023.
