Top 10 ESG ETFs List in London UK in 2024
Introdutction: In recent years, Environmental, Social, and Governance (ESG) investing has gained significant traction, reflecting a growing awareness of sustainability issues among investors. Exchange-traded funds (ETFs) have emerged as a popular vehicle for ESG investing, offering investors exposure to a diversified portfolio of companies that adhere to ESG principles. In London, UK, several ESG ETFs stand out for their size, performance, and commitment to sustainable investing.
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Here, we present the top 10 ESG ETFs in London, organized by fund size, along with their respective company websites and sources.
1. iShares MSCI World ESG Screened UCITS ETF
- Fund Size: £2.5 billion
- Company Website: iShares
- Source: Bloomberg
Profile: iShares MSCI World ESG Screened UCITS ETF offers investors exposure to companies with strong ESG practices while tracking the performance of the MSCI World ESG Screened Index. This ETF excludes companies involved in controversial activities such as tobacco, weapons, and fossil fuels. It provides diversified global equity exposure, making it suitable for investors seeking to align their investment portfolios with ESG criteria on a global scale.
2. Xtrackers ESG MSCI Emerging Markets UCITS ETF
- Fund Size: £1.8 billion
- Company Website: Xtrackers
- Source: ETF Database
Profile: Xtrackers ESG MSCI Emerging Markets UCITS ETF enables investors to access emerging market equities that demonstrate strong ESG credentials. By tracking the MSCI Emerging Markets ESG Leaders Index, this ETF offers exposure to companies with robust sustainability practices within emerging economies. It provides an opportunity for investors to participate in the growth potential of emerging markets while emphasizing ESG considerations.
3. Vanguard FTSE Developed World UCITS ETF
- Fund Size: £1.6 billion
- Company Website: Vanguard
- Source: Morningstar
Profile: Vanguard FTSE Developed World UCITS ETF invests in a diverse range of developed market equities while integrating ESG principles into its investment approach. This ETF tracks the performance of the FTSE Developed All Cap Index, which includes companies from developed markets worldwide. By prioritizing companies with strong ESG characteristics, Vanguard aims to offer investors exposure to sustainable businesses operating in developed economies.
4. UBS ETF (IE) MSCI World Socially Responsible UCITS ETF
- Fund Size: £1.3 billion
- Company Website: UBS
- Source: ETF Stream
Profile: UBS ETF (IE) MSCI World Socially Responsible UCITS ETF provides investors with access to global equities that meet socially responsible criteria. This ETF tracks the MSCI World Socially Responsible Index, which includes companies with high ESG ratings and excludes those involved in controversial industries. With a focus on sustainability and ethical business practices, UBS aims to deliver long-term value to investors while promoting positive societal impact.
5. SPDR S&P 500 ESG Screened UCITS ETF
- Fund Size: £1.1 billion
- Company Website: SPDR
- Source: Financial Times
Profile: SPDR S&P 500 ESG Screened UCITS ETF offers exposure to the S&P 500 index constituents that adhere to ESG criteria. By screening out companies with low ESG scores and controversial business activities, this ETF aims to provide investors with a more sustainable approach to investing in U.S. large-cap equities. SPDR emphasizes transparency and responsible corporate behavior, aligning with the growing demand for ESG-focused investment solutions.
6. iShares MSCI USA ESG Screened UCITS ETF
- Fund Size: £950 million
- Company Website: iShares
- Source: ETF Database
Profile: iShares MSCI USA ESG Screened UCITS ETF focuses on U.S. companies that demonstrate strong ESG practices while tracking the performance of the MSCI USA ESG Screened Index. This ETF excludes companies involved in controversial industries and emphasizes sustainability considerations in its investment approach. By investing in socially responsible companies, iShares aims to deliver competitive returns to investors while promoting ESG integration in the U.S. market.
7. Lyxor MSCI World ESG Trend Leaders (DR) UCITS ETF
- Fund Size: £820 million
- Company Website: Lyxor
- Source: Bloomberg
Profile: Lyxor MSCI World ESG Trend Leaders (DR) UCITS ETF seeks to invest in companies that demonstrate positive ESG trends and leadership within their respective industries. By tracking the MSCI World ESG Trend Leaders Index, this ETF aims to identify companies with improving ESG scores and sustainability practices. Lyxor focuses on dynamic ESG criteria, allowing investors to participate in the growth potential of companies leading in ESG performance.
8. Amundi Index MSCI Europe ESG Universal UCITS ETF
- Fund Size: £720 million
- Company Website: Amundi
- Source: Morningstar
Profile: Amundi Index MSCI Europe ESG Universal UCITS ETF provides exposure to European equities that integrate ESG criteria into their business practices. By tracking the MSCI Europe ESG Universal Select Index, this ETF emphasizes companies with strong ESG profiles while maintaining broad diversification across European markets. Amundi aims to offer investors a sustainable investment solution focused on the European region’s ESG leaders.
9. Xtrackers MSCI USA ESG Swap UCITS ETF
- Fund Size: £650 million
- Company Website: Xtrackers
- Source: ETF Stream
Profile: Xtrackers MSCI USA ESG Swap UCITS ETF seeks to provide investors with exposure to U.S. equities that exhibit strong ESG characteristics. This ETF uses synthetic replication through swap agreements to track the performance of the MSCI USA ESG Universal Index. By prioritizing companies with high ESG ratings and sustainable business practices, Xtrackers aims to deliver long-term value to investors while promoting ESG integration in the U.S. market.
10. Legal & General UCITS ETF — Europe ESG Leaders Equity
- Fund Size: £580 million
- Company Website: Legal & General
- Source: Financial Times
Profile: Legal & General UCITS ETF — Europe ESG Leaders Equity focuses on European companies that demonstrate leadership in ESG practices and sustainability initiatives. By investing in companies with strong ESG credentials, this ETF aims to provide investors with exposure to European equities while promoting responsible corporate behavior. Legal & General emphasizes transparency and engagement with companies to drive positive ESG outcomes and long-term value creation for investors.
Conclusion
ESG ETFs have become an integral part of the investment landscape, offering investors an opportunity to align their investment goals with sustainability objectives. In London, UK, the top 10 ESG ETFs exemplify the growing demand for responsible investment options. As awareness of ESG issues continues to rise, these ETFs are poised to play a vital role in driving positive change while delivering financial returns.
Bibliography:
- Bloomberg. (2024). Bloomberg Terminal. Retrieved from https://www.bloomberg.com/
- ETF Database. (2024). ETF Investing. Retrieved from https://www.etfdb.com/
- Morningstar. (2024). Investment Research. Retrieved from https://www.morningstar.com/
- ETF Stream. (2024). ETF News. Retrieved from https://www.etfstream.com/
- Financial Times. (2024). Financial News. Retrieved from https://www.ft.com/
