Lyxor has revamped three ETFs to track thematic indices that incorporate environmental, social and governance (ESG) metrics.

Effective 27 October, the $387m Lyxor Robotics & AI UCITS ETF (ROAI), the $1.5bn Lyxor World Water UCITS ETF (WATC) and the $88m Lyxor MSCI Taiwan UCITS ETF (TWLN) all swapped to thematic indices, with ROAI and WATC joining TWLN on MSCI indices.

As a result, ROAI will change its name to Lyxor MSCI Robotics & AI ESG Filtered UCITS ETF as it switches from tracking the Rise of the Robots Net Total Return index to the MSCI ACWI IMI Robotics and AI ESG Filtered Net Total Return index with a total expense ratio (TER) of 0.40%.

Established in 2007, WATC will be renamed Lyxor MSCI Water ESG Filtered UCITS ETF and will switch from the World Water Index CW Net Total Return index to the MSCI ACWI IMI Water ESG Filtered Net Total Return index with a TER of 0.60%.

Meanwhile, TWLN will become the Lyxor MSCI Semiconductors ESG Filtered UCITS ETF as it switches from the MSCI Taiwan 20/35 Net Total Return Index to the MSCI ACWI Semiconductors and Semiconductor Equipment ESG Filtered Net Total Return index with a TER of 0.45%.

Launched in 2007, TWLN will go from being 31.2% invested in the well-known Taiwan Semiconductor Manufacturer Company to 14.5%, behind top holing Nvidia at 17.6%.

Speaking to ETF Stream, Antonio Celeste (pictured), head of ESG product at Lyxor, said it designed the indices with MSCI to create a suite of ETFs to take advantage of thematic ESG megatrends.

“It is to provide clients with a consistent suite of products in the thematic space that will that use the same philosophy. They can combine a very advanced approach on a thematic selection with an ESG approach,” he said.

“There is an ESG component to select the top ESG performers and excluding companies involved in global controversies or controversial businesses such as, for example, conventional weapons or nuclear weapons.”

The switch follows several index changes by Lyxor in the past month including the €378m Lyxor MSCI EMU ESG UCITS ETF (MMFD), €142m Lyxor S&P Eurozone ESG Dividend Aristocrats UCITS ETF (EDIV) in October.

In the same month, the French asset manager swapped to an ESG index on the €280m Lyxor MSCI China ESG Leaders Extra UCITS ETF (ASIL) and its $942m Lyxor MSCI USA ESG UCITS ETF (USAL).

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