On September 20, 2018 ETF.com reported that Vanguard has “launched two new environmental, social and governance (ESG) ETFs, the first such funds from the issuer.
The Vanguard ESG U.S. Stock ETF (ESGV) and the Vanguard ESG International Stock ETF (VSGX) track domestic and international companies, respectively, that meet certain environmental, social and governance criteria.
ESGV tracks the FTSE US All Cap Choice Index, a domestic equity index, while VSGX tracks the FTSE Global All Cap ex US Choice Index, which covers developed and emerging markets outside the U.S.
Exclusionary screens eliminate any company whose business operations involve adult entertainment, alcohol, tobacco, weapons, fossil fuels, gambling and nuclear power.
In addition, companies that fail to meet the United Nations’ 10 Global Compact Principles are also excluded. These include principles such as the abolition of forced and child labor, a dedication to environmental responsibility and human rights, and an actively anti-corruption stance.
On top of this, prospective constituents must meet ‘appropriate’ diversity criteria, though what this means is not specified in the funds’ prospectus.”
You may read the article on the ETF.com internet site.