BNP Paribas has unveiled two ESG-focused Active Beta ETFs tailored for the Japan and US markets.

These innovative ETFs combine traditional indexing with BNPP AM’s proprietary ESG methodology.

Funds aim for sustainability while maintaining low tracking errors and adhering to evolving regulations.

BNP Paribas Asset Management (BNPP AM) introduced these new equity funds under its Active Beta exchange-traded funds (ETFs) range: the BNP Paribas Easy Sustainable Japan UCITS ETF and the BNP Paribas Easy Sustainable US UCITS ETF. Trading began on Euronext Paris on September 3, with plans to list on Deutsche Börse Xetra later this month.

The BNP Paribas Easy Active Beta ETFs uniquely blend traditional indexing with active ESG integration, catering to investors seeking alignment with sustainable practices. These funds incorporate BNPP AM’s independent ESG scoring methodology, ensuring low tracking errors and adaptability to regulatory changes and sustainability criteria, making them a solid choice for sustainability-focused investors.

Marie-Sophie Pastant, Head of Index & ETF Strategies – Portfolio Management at BNPP AM, elaborates on the strategy: "Our goal is to create a new category of equity funds that remain close to mainstream benchmarks, with a tracking error between 1% and 1.5%, while integrating strong ESG features. These funds will reduce their carbon footprint by 50% from their starting universe."

Fund Details:

BNP Paribas Easy Sustainable Japan UCITS ETF: Classified as an Article 8 fund under SFDR regulation, this ETF targets a minimum of 55% sustainable investment while tracking the MSCI Japan Net Total Return Index.

BNP Paribas Easy Sustainable US UCITS ETF: Also an Article 8 fund, it aims for at least 45% sustainable investment, tracking the S&P 500 Net Total Return Index.

Both ETFs are aligned with sustainable labels, including the French SRI label and the Toward Sustainability label. Lorraine Sereyjol-Garros, Global Head of Development for ETFs & Index Funds at BNPP AM, emphasizes the firm's commitment: "Our goal is to offer a comprehensive range of ESG & SRI ETFs that meet diverse investor needs in sustainable investing. These new ETFs provide a recognized ESG approach with substantial sustainable investment targets, addressing the increasing demand for ESG factors in portfolios."

BNPP AM continues to lead in sustainable investing, managing over EUR 51.9 billion in ETFs and index funds. With 90% of its range classified under SFDR Article 8 or 9, and over 70% carrying a European sustainability label, BNPP AM underscores its commitment to integrating ESG principles across its product offerings.