Home

BetaShares Global Sustainability Leaders ETF (ETHI)

Where Is the Money Going? (May 2021 Update)

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100906-2023-03-17-02:19.pdf
FUND MANAGER BetaShares Capital
ASX Code ETHI*
APIR ETHI
ASSET CLASS EXCHANGE TRADED FUNDS
INVESTMENT STYLE The Fund provides simple, cost-effective and transparent exposure to a portfolio of sustainable, ethical companies from a broad range of global locations.
INVESTMENT PROFILE The Fund aims to provide an investment return that tracks the performance of the Benchmark before taking into account fees and expenses.
CURRENCY MANAGEMENT Unhedged
INCEPTION DATE 05-01-2017
BENCHMARK Nasdaq Future Global Sustainability Leaders Index
FUND SIZE Nasdaq Future Global Sustainability Leaders Index
DISTRIBUTION FREQUENCY Half-yearly
NO. OF HOLDINGS Around 200
FEES 0.49% p.a.
STRUCTURE

Benefits

Benefits

Benefits of investing in the BetaShares Global Sustainability Leaders ETF

  • Diversification - with a single trade, investors can get exposure to a diversified portfolio of sustainable, ethical companies from a broad range of global locations
  • Cost effective - Fund tracks the performance of an index (no active manager' fees)
  • Large company exposure - strategy invests only in large global companies
  • Reduced administration - as an Australian domiciled fund, investors do not need to fill out W-8BEN forms, or risk any potential U.S. estate tax issues
  • Transparent - portfolio holdings, value of the Fund's assets and net asset value per unit available daily on our website
  • Liquidity - available to trade on the ASX like any share

RISK LEVEL
INVESTOR SUITABILITY

Risks

Title
Detail

Key Features

About the Fund

Provides simple, cost-effective and transparent exposure to a portfolio of sustainable, ethical companies from a broad range of global locations.

The Fund will generally invest in a portfolio of global equity securities that comprise the Index in proportion to the weightings of the securities in the Index.

The Index includes 200 large global stocks from developed market countries (excluding Australia) that have been identified as "Climate Leaders and that have also passed certain eligibility screens designed to exclude companies with direct or significant exposure to the fossil fuel industry or that are engaged in other activities deemed inconsistent with responsible investment considerations.

Climate Leaders are companies that have a carbon efficiency that places them in the top one-third of companies in their industry or are otherwise superior performers in relation to "Scope 4 carbon emissions(also known as "avoided emissions).

Carbon efficiency:Carbon efficiency is determined by calculating the greenhouse gas emissions from a company's operations, fuel use and supply chain, divided by its annual revenue.

Scope 4 (or avoided) carbon emissions:Superior performers in relation to Scope 4 carbon emissions are those companies involved in commercialising technologies that have net positive climate benefits through substantial greenhouse gas emissions reductions or sequestration. Companies in this category typically include those with primary business activities in renewable energy, energy efficiency, sustainable agriculture and land use, and carbon sequestration.

A fossil fuel screen is applied to the universe of Climate Leaders, which removes companies with any direct involvement in the fossil fuel industry, as well as companies with material indirect exposure (e.g. provision of products, services or finance which is specific to, and significant for, the fossil fuel industry) and those with particularly high use of fossil fuels.

The remaining universe is screened to remove companies which are exposed to activities considered to carry significant negative environmental, social and governance (ESG) risks (subject to certain materiality thresholds).

For further information on the Index and stock screening criteria, please see section 2 of the PDS.

Investment objective

The Fund aims to track the performance of an index (before fees and expenses) that provides exposure to 200 large global stocks (excluding Australia) which are climate change leaders (as measured by their relative carbon efficiency) and which are not materially engaged in activities deemed inconsistent with responsible investment considerations.

How to use this ETF in your portfolio

The Fund can be used to implement a variety of investment strategies. For example:

  • A core component of a global equities allocation providing transparency and diversification benefits in addition to being consistent with ethical and sustainable objectives
  • Tactical exposure to global equities

Mandate

How we invest your money

In seeking to achieve the investment objective, the Responsible Entity will employ a passive management approach designed to track the performance of the Index, before fees and expenses.

The Fund will generally invest in the securities that comprise the Index in proportion to the weightings of the securities in the Index. This is known as a "full replication strategy. The timing and nature of any changes to the composition of the Fund's investments will generally correspond with the timing and nature of changes to the Index.

In a variety of circumstances, however, the holdings of the Fund may not exactly replicate the Index. For example, it may not be possible or practical to do so in some circumstances, such as where investment restrictions apply which would prevent direct investment in a particular security. The Fund, from time to time, may not hold all of the securities comprising the Index and may hold securities in weightings which differ from the Index.

Investors will be able to regularly compare the performance of the Fund against the performance of the Index via the BetaShares website at www.betashares.com.au.

The Fund may hold exchange-traded derivatives contracts from time to time (e.g. futures contracts) and other investments that do not form part of the Index where this may help to achieve the Fund's investment objective.

Small cash balances may be held in the Fund from time to time.

For further information on the Index and stock screening criteria, please see section 2 of the PDS.