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News & Research
Most Recent News & Research
Index | ESG & Sustainability
Want to incorporate SDG exposures into your portfolios? There’s no such thing as a (risk) free lunch, but here’s a way to do it…
This paper focuses on creating SDG portfolios that maximize exposure to one, two or all SDGs. The study shows that it is quite possible to create a portfolio that significantly improves the exposure to SDGs without taking on too much active risk. An optimizer can help manage that active risk.
Sustainable investing strategies vary. Some investors, for example, simply want to improve ESG alignment. Others seek to maximize their impact on society, by investing in those companies that contribute the most to certain goals. While the metrics that underlie these approaches have some overlap, there is not perfect correlation, in terms of how metrics are defined, how portfolios are constructed, what is being targeted, etc.
The STOXX® USA 500 ESG Broad Market, ESG Target, and ESG Target TE indices aim to provide alternatives for index investors and product issuers who are looking to switch to more sustainable versions of traditional benchmarks.
Index | ESG & Sustainability
The Best Bang for Your Climate-Aware Buck (Or Pound, Euro, Yen – You Name It)
In this paper we attempt to answer the following questions: in which region can you make the most impact, and how much active risk is required to achieve your climate goals?
Index | ESG & Sustainability
Risk, Return and Sustainability: Qontigo ESG Target Indices Provide an Optimal Solution
While sustainable investing is not a new concept, its growing popularity means a sharper focus is needed on how to achieve sustainability goals without sacrificing returns or taking on too much unintended risk.
Index | ESG & Sustainability
Beyond ESG: From ‘How Does Sustainability Affect My Portfolio’ to ‘How Does My Portfolio Affect the World?’
ESG integration, sustainability, and impact investing…While there may be overlap in the meanings of these terms, they each represent a distinct approach to “doing well while doing good” in investor portfolios.
Index | ESG & Sustainability
Climate Impact Investing Is Coming On Fast… What Portfolio Managers Need to Know — and Do — to Successfully Adapt
There is no denying the impact of climate change — and associated regulatory realities — on the business of investment management. For portfolio managers, it is essential to understand how to successfully adapt and prepare for what some call the “mother of all correlated risks”. Here we expose — in three parts — what portfolio managers need to know when switching to a fully Paris Aligned Benchmark (PAB) portfolio from a current market-cap weighted (CWB) portfolio.
Index | ESG & Sustainability
Climate Transition Risk – The Market Impact You Get for the Climate Impact You Had
Ahead of the Qontigo Summit, Olivier d’Assier analyzes the cost of adapting a portfolio to meet global warming targets using a STOXX Paris-Aligned Benchmark index. The results show that an early but gradual transition can dramatically reduce the market impact and transaction costs.
Index | ESG & Sustainability
The STOXX Europe 600 Paris-Aligned Benchmark: A Better Path to Success?
The STOXX® Europe 600 Paris-Aligned Benchmark Index was launched in June 2020. In backtested data since March 2018, we find that the strategy has offered a higher return and lower volatility versus its benchmark. This paper drills down into some of the factors driving those results.
Index | ESG & Sustainability
Introducing STOXX® Factor and ESG-X Factor Indices: Get More From Your Premia Exposures
STOXX Factor Indices are designed for investors who want to reap factor premia while avoiding the noise that pervades many other such products that allow undesired exposures.