Vanguard Australia selects new FTSE Russell index for values-aligned ETF and index fund

FTSE Russell, the global index provider, announced that Vanguard Australia has licenced a new values-aligned index for two ESG-related investment products. The FTSE Developed ex Australia ex Non-Renewable Energy/Vice Products/Weapons Index forms part of the new FTSE Global Choice Index Series. It is the first FTSE Russell standard index family to incorporate several categories of ESG-related exclusions in its design. Increasingly, investors are looking to exclude stocks from their portfolios based on the impact of companies’ products and conduct on society and the environment. In addition to the standard index family, clients can construct bespoke ‘Choice’ indexes using an innovative ‘building blocks’ approach, to customise alignment with their particular values and investment objectives.

The FTSE Developed ex Australia ex Non-Renewable Energy/Vice Products/Weapons Index has been chosen by Vanguard Investments Australia for its new Vanguard Ethically Conscious International Shares Index Fund, and for its Vanguard Ethically Conscious International Shares Index Fund ETF (ticker: VESG). These new funds are expected to list on the Australia Securities Exchange in September 2018.