Vanguard plans to start its first set of ETFs that invest using ESG criteria.
The company filed with the SEC to create a U.S. stock ETF and an international stock ETF that will screen for ESG factors, according to a statement Wednesday. The firm has an existing mutual fund tied to such strategies, the $4.4 billion Vanguard FTSE Social Index Fund (VFTSX), that was launched in 2000. That fund has gained 3.5% this year, trailing 89% of peers, according to data compiled by Bloomberg
The new ETFs, which are expected to begin trading in September, will exclude investments in a variety of industries, including alcohol, tobacco, weapons, fossil fuels and nuclear power, the Valley Forge, Pennsylvania-based company said in the statement. Vanguard, the second-biggest U.S. provider of ETFs, manages $5.1 trillion.
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