FlexShares STOXX Global ESG ETF (ESGG)

Overview

The described company operates a fund that strategically invests in a globally diverse portfolio, focusing on companies that perform well in environmental, social, and governance (ESG) criteria. The investment approach is designed around the premise that companies that are proactive and positive in these areas can potentially offer better performance and lower risks. It mirrors the investment strategy against the broad market, as evidenced by its comparison with the STOXX® Global 1800 Index, which includes a wide array of companies from the U.S. and developed markets worldwide. The emphasis on ESG factors aims to cater to investors who are not just looking for financial returns but also want to support or benefit from companies that are deemed to be responsible corporate citizens.

Products and Services

• ESG-focused investment fund - The core offering revolves around an investment fund that allocates at least 80% of its total assets in securities selected based on their ESG performance. These securities are part of, or related to, the companies listed within the STOXX® Global 1800 Index but are filtered through an ESG evaluation lens. The fund aims to offer investors exposure to a diversified portfolio that aligns with their value-driven investment goals.
• This investment vehicle is crafted for those looking to integrate social responsibility into their investment strategy without compromising on the potential for market-comparable returns. By focusing on companies that score well on ESG metrics, the fund seeks to balance ethical considerations with financial objectives.
• ADR and GDR investments - In addition to direct investments in securities, the fund also engages in American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) based on the securities within the index. These instruments allow the fund to include non-US companies in its portfolio, offering a broader market exposure and increased diversification for its investors.
• ADRs and GDRs are financial instruments that represent a specified number of shares in a foreign company and are traded on U.S. and global markets, respectively. By including these in its portfolio, the fund enables investors to tap into opportunities available in international markets while benefiting from the potential ESG-driven performance of the underlying companies.