WisdomTree adds ESG filter to 12 equity ETFs

WisdomTree has added environmental, social and governance (ESG) criteria to every UCITS equity ETF in the range that is self-indexed.

Using data from Sustainalytics, the 12 ETFs will implement an ESG screening process that excludes controversial weapons, tobacco, companies generating more than 25% from thermal coal and any company non-compliant with the United Nations Global Compact (UNGC).

Companies in the retail sector with less than 10% of their revenues derived from tobacco companies are eligible for inclusion.

The ESG exclusions were made towards the end of last year highlighting the increasing demand for strategies that have a sustainable impact.

The 12 ETFs are:

• WisdomTree US Quality Dividend Growth UCITS ETF (DGRA)

• WisdomTree US Equity Income UCITS ETF (DHS)

• WisdomTree Japan Equity UCITS ETF (DXJ)

• WisdomTree Europe SmallCap Dividend UCITS ETF (DFE)

• WisdomTree Europe Equity UCITS ETF (HEDJ)

• WisdomTree Emerging Markets SmallCap Dividend UCITS ETF (DGSE)

• WisdomTree Emerging Markets Equity Income UCITS ETF (DEM)

• WisdomTree UK Equity Income UCITS ETF (WUKD)

• WisdomTree Global Quality Dividend Growth UCITS ETF (GGRA)

• WisdomTree Eurozone Quality Dividend Growth UCITS ETF (EGRA)

• WisdomTree Europe Equity Income UCITS ETF (EEI)

• WisdomTree Battery Solutions UCITS ETF (VOLT)

Nitesh Shah, director, research, at WisdomTree, commented: “All of WisdomTree’s UCITS equity ETFs, including VOLT, tracking proprietary indices have seen their index methodologies enhanced to incorporate ESG considerations in the past six months.

“These index methodology enhancements, which include exclusion criteria, are part of our broader ESG commitment and evolution within this space.”

The ETF issuer has been busy in the market this year having launched the world’s first coronavirus recovery bond ETF, the WisdomTree European Union Bond UCITS ETF (EUBO), on 18 February.

Prior to this, WisdomTree expanded its thematic ETF range with the launch of the WisdomTree Cybersecurity UCITS ETF (WCBR) in January.