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BlackRock turns focus on Japan for ethical ETF

BlackRock has launched a sustainable ETF with exposure to Japan. It’s an addition to a range of ETFs the asset manager has launched recently.


Louise Hill

The fund, the iShares MSCI Japan SRI Ucits ETF, will choose companies based on the environmental, social and governance (ESG) ratings, opting only for those rated between A and AAA and expands BlackRock’s current range of sustainable equity ETFs.

It will exclude companies involved in the likes of alcohol, firearms, adult entertainment and tobacco.

Tom Fekete, global head of iShares product at BlackRock, said: “We’re having many more conversations with investors looking for ways to embed a sustainable approach to investment into their portfolios.

“Whether the investor is a pension fund, insurance company, asset manager or wealth manager, we have built a set of ETFs that provide a values-based, cost efficient way to access different asset classes.”

The fund launch comes as investor sentiment to Japan is strengthening on the back of action from the Bank of Japan, positive corporate earnings and more positive asset flows.  

The fund is physically-replicating and will buy the underlying securities of the MSCI SRI (Socially responsible investing) index.  It has a total expense ratio of 0.30%.