UniCredit launches first ETFs combining factor strategy with ESG criteria on European equities
- New products combine sustainability-based strategies with systematic exploitation of risk premia
UniCredit Bank AG, via its subsidiary Structured Invest S.A., has announced the listing of two exchange-traded funds (ETFs) based on the eurozone’s first set of indices combining a factor strategy with environmental, social and governance (ESG) screens.
The ETFs will track the EURO iSTOXX ESG-X & Ex Nuclear Power Multi Factor Index and EURO STOXX ESG-X & Ex Nuclear Power Minimum Variance Unconstrained Index.
The first of these indices is designed to exploit sources of market-excess returns, so-called risk premia, whilst filtering out companies that do not comply with ESG principles. The second takes the same responsible approach while seeking to lower the portfolio’s volatility.
Both indices are based on the EURO STOXX Index and apply standardized ESG exclusion screens through data provider Sustainalytics, principally following the United Nations Global Compact principles of human and labour rights, the environment, business ethics and anti-corruption.
The UC iSTOXX ESG-X Multi Factor UCITS ETF and the UC STOXX ESG-X Minimum Variance UCITS ETF will be listed on Deutsche Börse and are tradable under the tickers ECBF / LU1982823087 and ECBV / LU1982822949, respectively.
Both products are approved for distribution in Austria, Germany, Italy, Luxembourg and France.
Vincenzo Spadaro, Global Head of Institutional Equity Derivatives, UniCredit, said: “In order to meet ESG investment criteria, asset owners need to look for solutions beyond the traditional market-cap-weighted index. With the launch of these ETFs, we are proving once again that we can respond flexibly to market developments and the demands of our clients.”
Willem Keogh, STOXX’s Head of ESG, Thematic and Factor Solutions, added: "We are delighted that UniCredit has decided to launch two ETFs on our indices, which combine two strong investment trends that have garnered growing assets and momentum in recent years – sustainability-based strategies on the one hand, and the passive and systematic exploitation of risk premia on the other."
Structured Invest is a Management Company under Luxembourg law and a 100 percent subsidiary of UniCredit Bank AG. Its core competence is the launch of investment funds in various formats, e.g. as UCITS mutual funds and ETFs or Alternative Investment Funds (AIF: Luxembourgish and German Specialised Investment Funds).
The listing of the products follows the December launch of the UC MSCI European Green Bond EUR UCITS ETF – the first ETF to provide investors with access to a broadly diversified range of liquid euro-denominated green bonds from European issuers.
UniCredit Bank Austria Pressestelle
Franziska Schenker, Tel.: +43 (0) 5 05 05-51417;
UniCredit is a simple successful pan-European Commercial Bank, with a fully plugged in CIB, delivering a unique Western, Central and Eastern European network to its extensive client franchise: 26 million clients. UniCredit offers both local and international expertise to its clients, providing them with unparalleled access to leading banks in its 14 core markets through its European banking network: Italy, Germany, Austria, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Hungary, Romania, Russia, Serbia, Slovakia, Slovenia and Turkey. Leveraging on an international network of representative offices and branches, UniCredit serves clients in another 18 countries worldwide.
About STOXX Limited
STOXX Ltd. is a global index provider, currently calculating a global, comprehensive index family of over 7,500 strictly rules-based and transparent indices. Best known for the leading European equity indices EURO STOXX 50, STOXX Europe 50 and STOXX Europe 600, STOXX Ltd. maintains and calculates the STOXX Global index family which consists of total market, broad and blue-chip indices for the regions Americas, Europe, Asia/Pacific and sub-regions Latin America and BRIC (Brazil, Russia, India and China) as well as global markets.