Vanguard has unveiled two more funds for its “building block” suite of ESG ETFs over a year after launching any new products for its green passive range.
The Vanguard ESG Developed Europe All Cap Ucits ETF and the Vanguard ESG North America All Cap Ucits ETF are listed on the London Stock Exchange.
Overseen by Vanguard’s Equity Index Group, which manages more than $4.8trn globally, the ETFs will provide investors with exposure to large-, mid- and small-cap stocks in their respective regions, while excluding certain sinful industries, such as firearms, tobacco or fossil fuels.
With an ongoing charges figure of 0.12%, they are now the cheapest ESG-focused funds in Vanguard’s stable.
Fong Yee Chan, head of ESG strategy, UK and Europe, said the launches mark the start of the next stage in the $7.5trn (£6.2trn) passive giant’s “commitment” to develop its low-cost ESG range.
Vanguard has been slower than rivals to jump onto the ESG bandwagon, with new products coming in drips and drabs. It began ramping up its efforts in earnest in June 2020, when it launched its first pair of ESG index funds for UK investors in over a decade.
Including the most recent launches it has eight passive ESG funds in its UK range, with the last pair of funds launched over a year ago in May 2021.
By contrast, Blackrock’s iShares has more than 220 green ETFs and index funds domiciled in Ireland and the UK, including 50 screened products and 22 thematic strategies.
Toward the tail end of 2021, Vanguard pushed into the active ESG space with the launch of its Sustainablelife range.
| Fund name | Strategy | Domicile | OCF |
| Vanguard ESG Developed Europe All Cap UCITS ETF | Index | Ireland | 0.12% |
| Vanguard ESG North America All Cap UCITS ETF | Index | Ireland | 0.12% |
| Vanguard ESG Global All Cap UCITS ETF | Index | Ireland | 0.24% |
| Vanguard ESG Developed World All Cap Equity Index Fund (UK) | Index | UK | 0.20% |
| Vanguard ESG Developed World All Cap Equity Index Fund | Index | Ireland | 0.20% |
| Vanguard ESG Emerging Markets All Cap Equity Index Fund | Index | Ireland | 0.25% |
| Vanguard SRI European Stock Fund | Index | Ireland | 0.14% |
| Vanguard ESG Global Corporate Bond UCITS ETF | Index | Ireland | 0.15% |
| Vanguard SustainableLife 40-50% Equity Fund | Active | UK | 0.48% |
| Vanguard SustainableLife 60-70% Equity Fund | Active | UK | 0.48% |
| Vanguard SustainableLife 80-90% Equity Fund | Active | UK | 0.48% |
| Vanguard Global Sustainable Equity Fund | Active | UK | 0.48% |
This article originally appeared on ESG Clarity sister publication Portfolio Adviser.
