Two new exchange-traded funds issued by iShares have been tradable on Xetra and Börse Frankfurt since Friday.
The iShares MSCI World Momentum Factor ESG UCITS ETF USD (Acc) and the iShares MSCI World Value Factor ESG UCITS ETF USD (Acc) offer investors the opportunity to invest in sustainable companies worldwide with a focus on momentum or value as a factor strategy.
Momentum reflects the dynamics of the share price development in different market phases. Companies, whose share price performance shows an upward trend, are selected. The value factor uses fundamental data such as the price-to-book ratio or the price-to-earnings ratio to filter out undervalued companies on this basis.
Based on the MSCI World Index, companies are selected as part of an optimisation process with the aim of achieving a higher ESG rating and reducing exposure to carbon emissions compared to the parent index. With the momentum strategy, companies are evaluated on the basis of their performance over the last six and twelve months. The value strategy selects companies based on equal weighting of fundamentals, namely the price/earnings ratio, the price/book ratio, and the ratio of enterprise value to operating cash flow.
Companies that violate the United Nations Global Compact, are involved in serious ESG controversies or are active in the fields of weapons, tobacco, oil sands and thermal coal are excluded from the index.
| Name | Asset class | ISIN | On-going charges | Distribution policy | Reference index |
| iShares MSCI World Momentum Factor ESG UCITS ETF USD (Acc) | Equity ETF | IE000L5NW549 | 0.30 per cent | Accumulating | MSCI World Momentum ESG Reduced Carbon Target Select Index |
| iShares MSCI World Value Factor ESG UCITS ETF USD (Acc) | Equity ETF | IE000H1H16W5 | 0.30 per cent | Accumulating | MSCI World Value ESG Reduced Carbon Target Select Index |
The product offering in Deutsche Börse’s XTF segment currently comprises a total of 1,720 ETFs. With this selection and an average monthly trading volume of around €17 billion, Xetra is the leading trading venue for ETFs in Europe.