iShares has launched a new ETF in the Australian market, IESG, the Core MSCI Australia ESG Leaders ETF. Much like the Blackrock SPDR E200 ETF, this one looks to mimic a broad exposure to the Australian market leaders, the ASX200 but provides improved sustainability credentials.
The launch of IESG makes the 7th ETF listed on the ASX that boast strong ESG (environmental, social and governance) credentials. The others are the BetaShares Australian Sustainability Leaders fund (FAIR), the Vanguard Ethically Conscious Australian Share portfolio (VETH), SPDR's ASX200 ESG fund (E200), InvestSmart's Ethical Securities fund (INES), Perrenial's Future Impact Small Cap;s fund (IMPQ), Russell's Australian Responsible Investment ETF (RARI).
The immediate benefit of IESG is that they are driving fees in this sector lower. Management fees stand at 0.09% compared to E200 at 0.13% and the incumbent, the only major that has been around longer than a year, FAIR at 0.49%. Thats a big gap in fees.
IESG is designed for those who want ASX200 exposure and a clearer conscience. It looks a lot like the ASX 200. Comparing A200 top 10 exposures and IESG:
A200 IESG
Commonwealth Bank Commonwealth Bank
CSL CSL
Macquarie Macquarie
Wesfarmers Wesfarmers
RIO RIO
ANZ Xero
Woolworths James Hardie
WBC Fortescue
NAB Transurban
BHP Newcrest
IESG helpfully screens out all controversial, nuclear and civilian weapons plus tobacco manufacturers from the index.
Given FAIR's performance in the last 12 months and the undoubted trend towards ESG investments IESG is a welcome inclusion.
Accument will not rate IESG until we see one months trading data.
Much more information on accument.my.stacker.app
