“This is the first S&P/BMV index of its kind in Mexico that combines a factorial or smart beta strategy with ESG criteria,” said Silvia Kitchener, director of Latin American Equity Product Management at S&P Dow Jones Indices.
The ESG methodology of the ETF excludes companies that fail to comply with the Principles of the UN Global Compact, in order to create a portfolio with companies committed to the environment, a better society and transparency in corporate information, since “various studies on historical behavior show that sustainable investments help reduce risks, represent a profound change in the economic paradigm and provide stable returns to investors”, commented Jaime Lázaro Ruiz, General Director of Asset Management at BBVA Mexico.
The MEXTRAC ETF, which currently has 10,657 million pesos in assets under management, is made up weighted by the average of the dividends. From the sample of companies with the highest dividend rates, the companies with the best ESG scores are weighted from highest to lowest and companies that fail to comply with the UN Global Compact Principles are excluded, in which those with bad practices in pollution activities, human rights, labor conditions, bribery and corruption or discrimination.
“We are proud to bring innovative offerings to the stock market and this ESG ETF is a clear example of that. In conjunction with financial intermediaries, as in this case BBVA, we see that the investor shows more and more interest in these disruptive trends and with a sustainable impact for society”, said José-Oriol Bosch, CEO of Grupo BMV.