ESGI gives investors exposure to a diversified portfolio of sustainable international companies listed on exchanges in developed markets around the world (ex Australia).

ESGI aims to provide investment returns before fees and other costs which track the performance of the Index.

The Fund provides investors with:

o cost effective and easy access to a diversified portfolio of international listed equities via a single trade on ASX
o transparency of holdings, pricing and performance
o flexibility of intraday ASX trading capability, and
o less paperwork than investing directly in international securities.

Compared to unlisted actively managed funds, investors benefit from: trading via live prices on ASX; potentially lower costs and lower tax liabilities; liquidity; transparency and intraday trading.

About the Fund

The VanEck MSCI International Sustainable Equity ETF (ESGI) invests in a diversified portfolio of sustainable international companies listed on exchanges in developed markets around the world (ex Australia) with the aim of providing investment returns, before fees and other costs, which track the performance of the MSCI World ex Australia ex Fossil Fuel Select SRI and Low Carbon Capped Index. 

Index description

MSCI Australia IMI Select SRI Screened Index aims to represent the performance of a diversified portfolio of Australian companies that have high Environmental, Social and Governance (ESG) performance by:

1. Excluding companies that own any fossil fuel reserves or derive revenue from mining thermal coal or from oil and gas related activities;
2. Excluding companies with business activities that are not socially responsible investments (SRI); and
3. Targeting companies with high ESG ratings.

The Fund aims to provide investment returns before fees and other costs which track the performance of its Reference Index in Australian dollars. The Fund does not aim to perfectly replicate its Reference Index on a one-to-one basis for a number of reasons, including:o differences in the timing of dividends and corporate actions between the Reference Index and the Fund;

o the Fund may not be able to achieve the same trading price for securities as that determined for the Reference Index;
o there are fees and other costs applicable to operating the Fund which do not apply to the Reference Index;
o international withholding tax rates applied to the Reference Index may differ to those applicable to the Fund;
o the Fund will only hold securities that are listed on exchanges approved by ASX under the AQUA Rules;
o we may allow individual security weightings to vary marginally from the Reference Index and may invest in securities that are not in the Reference Index. and
o the Fund may hold a small amount of cash.