OREANDA-NEWS. June 28, 2018. Vanguard today filed a registration statement with the U.S. Securities and Exchange Commission for the proposed launch of two ESG (Environmental, Social, and Governance) index ETFs.

Vanguard ESG U.S. Stock ETF and Vanguard ESG International Stock ETF will be managed by Vanguard's Equity Index Group to provide two of the lowest-cost and broadly diversified, exclusionary-screened index products in the marketplace. Consistent with Vanguard's investment principles, the ETFs will offer all-capitalization exposure within the U.S. and international equity markets to investors who seek to reflect certain values in their investments. The International ETF includes an allocation to both developed and emerging markets.

The ETFs seek to track benchmarks created by FTSE Russell. In developing the benchmarks, FTSE will screen its broad domestic and international stock indexes to exclude stocks of companies in the following industries: adult entertainment, alcohol, tobacco, weapons, fossil fuels, gambling, and nuclear power. The construction methodology will also screen the stocks of companies that do not meet certain diversity criteria as well as, labor, human rights, anti-corruption, and environmental standards as defined by the U.N. global compact principles.

Since 2000, Vanguard has been offering socially responsible funds to help investors with certain value preferences reach their goals. Vanguard FTSE Social Index Fund is now the largest ESG-screened index fund in the United States.* Given our customary deliberate, disciplined process for developing new investment products, we believe expanding our ESG offering will further enhance our low-cost approach and satisfy evolving investor preferences.

Vanguard ESG U.S. Stock ETF and Vanguard ESG International Stock ETF are expected to be available in September 2018 with estimated expense ratios of 0.12% and 0.15%, respectively.

* Source: Vanguard. Data are as of March 31, 2018.


  • A registration statement relating to the Vanguard ETF Shares has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
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