BlackRock has launched an exchange-traded fund (ETF) offering exposure to Japanese companies with high environmental, social and governance (ESG) ratings.
The iShares MSCI Japan SRI UCITS ETF (SUJP) will track Japanese companies with the strong ESG credentials as determined by MSCI the index provider.
The fund will exclude companies related to alcohol, tobacco, gambling, civilian firearms, military weapons, nuclear power, adult entertainment and genetically modified organisms.
The fund will be physically-replicated, holding the underlying assets of the index.
The ETF will carry a total expense ratio of 0.3%.
‘We’re having many more conversations with investors looking for ways to embed a sustainable approach to investment into their portfolios,’ said Tom Fekete, global head of iShares products at BlackRock.
He added the launch of a Japan fund is particularly timely given that investor sentiment towards the country is strengthening.
‘The combination of Bank of Japan’s commitment to their easing programme, positive corporate earnings helped by the weaker yen, and asset flows turning more positive is triggering some investors to build Japanese exposure into their portfolios.’