Northern Trust turns up on European market with climate ETFs
Flexshares, the ETF business of the $1.1trn US asset manager Northern Trust Asset Management has listed on Monday two climate-focused exchange traded funds (ETFs) on stock exchanges of various European countries (UK, Ireland, Sweden, Germany and the Netherlands). The FlexShares Developed Markets Low Volatility Climate ESG UCITS ETF and the FlexShares Developed Market High Dividend Climate ESG UCITS ETF form FlexShares's first ETFs available in Europe, with additional funds scheduled for launch in the coming months.
Both strategies will rely on Northern Trust AM’s proprietary Quality factor to identify companies exhibiting strength in profitability, management expertise and cash flow while maximising the portfolio’s ESG exposure and reducing its carbon footprint. FlexShares joined forces with German index provider STOXX to develop benchmarks for both ETFs (iSTOXX Northern Trust Developed Markets Low Volatility Climate ESG Index and iSTOXX Northern Trust Developed Markets High Dividend Climate ESG Index). As part of its expansion in Europe, FlexShares will seek “various opportunities to develop new proprietary benchmarks best suited to its products and investor needs.”