Get the latest news on Vanguard ESG International Stock ETF stock with updates on market trends, financials, and analysis from Benzinga. Stay informed on VSGX performance

Latest Vanguard ESG International Stock ETF  News | BATS:VSGX | Benzinga

Financial Services

Technology

Consumer Cyclical

Healthcare

Industrials

Consumer Defensive

Basic Materials

Communication Services

Other

Real Estate

Utilities

Energy

The fund invests by sampling the index, meaning that it holds a broadly diversified collection of securities that, in the aggregate, approximates the full index in terms of key characteristics. The index, which is market-capitalization weighted, is composed of large-, mid-, and small-cap stocks of companies in developed and emerging markets, excluding the United States, that are screened for certain environmental, social, and corporate governance (ESG) criteria by the index sponsor, which is independent of Vanguard.

Taiwan Semiconductor Manufacturing Co. Ltd.

Novo Nordisk A/S  

Asml Holding Nv

Bunka Shutter Co Ltd

Nestle Sa

Astrazeneca Plc

Sap Se

Vanguard ESG International Stock ETF

Long Ideas

Broad U.S. Equity ETFs

Specialty ETFs

Trading Ideas

ETFs

ESGV

OMFL

OMFS

VSGX

Survey Says Global Adoption Of Smart Beta ETFs Reaches New High

A new survey published by FTSE Russell, one of the largest providers of indexes for use by issuers of exchange traded funds, indicates adoption of smart beta ETFs, those funds using weighting schemes beyond market capitalization, is reaching new heights.

The index provider&#39;s sixth annual survey of global institutional investors&#39; attitudes toward smart beta, or alternatively-weighted ETFs indicates adoption rates of these strategies reached 58 percent earlier this year, up 10 percent from 2018.

<h3>What Happened</h3>

&quot;Notably, in 2019 nearly eight in 10 (78%) asset owners have implemented, are evaluating or plan to evaluate a smart beta index-based strategy,&rdquo; <a href="https://www.ftserussell.com/">said FTSE Russell</a>. &ldquo;In addition, adoption rates increased in Europe, North America and the Asia Pacific region, with growth also recorded in all AUM tiers: less than $1 billion, between $1-10 billion and more than $10 billion.&rdquo;

Among the factors contributing to institutional investors&#39; adoption of smart beta ETFs are risk reduction, the potential for higher returns and the ability to bolster portfolio diversification. FTSE Russell also notes multi-factor funds are expected to be drivers of smart beta growth going forward.

ETFs tracking FTSE Russell multi-factor indexes include the Invesco Russell 2000 Dynamic Multifactor ETF (NYSE:<a class="ticker" href="/stock/OMFS#NYSE">OMFS</a>) and the Invesco Russell 1000 Dynamic Multifactor ETF (NYSE:<a class="ticker" href="/stock/OMFL#NYSE">OMFL</a>).

<h3>Why It&#39;s Important</h3>

Data from FTSE Russell also confirm institutional investors continue warming to environmental, social and governance (ESG) investment strategies. While the <a href="nvesco Russell 1000 Dynamic Multifactor ETF">universe of related ETFs</a> is growing in the U.S., investors&#39; enthusiasm for such products is more pronounced in Europe.

&ldquo;Among European asset owners evaluating or using smart beta, those expecting to apply ESG considerations to a smart beta strategy increased from 55% in 2018 to 77% in 2019,&rdquo; said FTSE Russell. &ldquo;Adoption of ESG considerations into smart beta strategies remained flat in North America, with lack of stakeholder demand cited by respondents as the main reason for lack of growth in this area.&rdquo;

Among U.S.-listed ESG ETFs, FTSE Russell <a href="https://www.benzinga.com/trading-ideas/long-ideas/18/09/12385655/vanguard-enters-esg-arena-with-two-etfs">provides indexes for the</a> Vanguard ESG U.S. Stock ETF (CBOE:ESGV) and Vanguard ESG International Stock ETF (CBOE:VSGX), among others. Those Vanguard products, which debuted last September, have almost $680 million in combined assets under management.

<h3>What&#39;s Next</h3>

Issuers of smart beta ETFs should be heartened to know the FTSE Russell survey indicates barriers to entry to products are declining among institutional investors.

&ldquo;This suggests that asset owners are becoming more comfortable with smart beta strategies, as many investors have developed an increased understanding of these products and have more confidence in their longer track records,&rdquo; said the index provider. &ldquo;These were cited as the top two reasons many asset owners are re-evaluating smart beta strategies.&rdquo;

Related Links:

<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/06/13892765/growth-etfs-can-keep-commanding-premiums-over-value">Growth ETFs Aren&#39;t As Pricey As You Think</a>

<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/06/13870301/prepare-for-retail-retrenchment-with-this-etf">How To Win Shorting Retail Stocks</a>

Comments

Vanguard ESG International Stock ETF Stock News

News

Latest Vanguard ESG International Stock ETF News | BATS:VSGX | Benzinga

Tuesday, June 11, 2019

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga