Extended choice to match your sustainable investing goals
When it comes to ESG investing or responsible investing, one size does not fit all, therefore our toolbox contains two index categories, each one with its own level of sustainability commitments and goals.
Qontigo’s ESG Categories
‘Exclude’ strategies – an efficient starting base
This category is a starting point in responsible engagement and risk mitigation, and comprises ESG exclusion and integration strategies. For investors seeking to raise the ESG profile of portfolios but maintain low tracking errors and similar risk-return characteristics to STOXX and DAX benchmarks.
‘Enhance’ strategies – optimizing sustainable investing
Our ‘Enhance’ category has been designed for investors who wish to maximize their portfolios’ ESG profiles while maintaining benchmark exposure. The category is made up of STOXX and DAX indices that aim to maximize the sustainability profile of portfolios.
The Role of Our Indices
STOXX and DAX ESG indices serve as underlyings for a wide range of investable products:
Your ESG Index Families
ESG Blue Chip
I want to EXCLUDE companies or sectors based on specific criteria through the use of ESG screens while maintaining similar risk-return profiles to STOXX and DAX benchmark indices.
- Our ESG-X methodology incorporates standard norm- and product-based exclusionary screens, for example, filtering out controversial weapons, thermal coal and tobacco (exclusion only).
- Our STOXX ESG Broad Market Indices exclude 20% of the parent index through a combination of negative exclusions and the removal of the poorest-scoring securities in terms of ESG criteria.
- Our STOXX and DAX ESG blue-chip indices are derived from some of the world’s most iconic benchmarks. They combine negative exclusions with the positive integration of ESG scoring into stock selection, removing companies with the lowest ESG grades and replacing them with better-ranked peers. The EURO STOXX 50® ESG Index and the DAX® 50 ESG Index belong in this category.
ESG Target / Target TE
I want to further ENHANCE my exposure to specific ESG criteria and support the transition to a more sustainable world, while maintaining benchmark exposure.
- Our ESG Target Indices aim to reflect the benchmark’s performance and, at the same time, maximize the portfolio’s ESG score. The weighting of each constituent security is determined through an optimization process that ensures diversification and relies on Axioma’s risk modelling for tracking error calibration. The ESG Target Tracking Error Indices use a similar configuration, but have an even stricter tracking error objective.
- Our STOXX ESG Leaders indices are made up of the best-in-class stocks in terms of E, S and G criteria based on specific indicators. The indices were introduced in 2011 and have earned a large following from investors seeking targeted sustainable returns.
- Our STOXX SRI (Socially Responsible Investing) indices track the best ESG performers from each industry group within a selection of STOXX benchmarks, and additionally apply a set of carbon emissions intensity, compliance and product involvement screens.
Key Benefits of Our Exclude and Enhance Indices
Accurate and transparent non-financial factors are used to identify material ESG risks and growth opportunities
Transparency and Simplicity
Clear and easy-to-explain, rules-based framework allows users to incorporate ESG considerations into their investment processes
Liquidity and Tradability
Liquidity is a crucial determinant in the selection of securities
STOXX Climate Indices are designed to facilitate the shift in investments towards a low-carbon economy and to align investments to the Paris Climate Agreement.
STOXX provides ESG-screened versions of more than 70 benchmarks that meet the standard responsible-investing criteria of leading asset owners.
More investors are in need of benchmarks that go beyond standard negative exclusions and that can measure an active strategy of positive ESG integration.
ESG Leaders Indices
The STOXX® Global ESG Leaders Index is STOXX’s broadest benchmark tracking the highest achievers in ESG policies.
Low Carbon Indices
Designed to help investors decarbonize their portfolios and limit the exposure to climate-related risks, such as stricter regulations and physical damage, while participating in the low-carbon economic growth.
All Sustainability Indices
STOXX provides ESG-screened versions of more than 40 benchmarks that meet the standard responsible-investing criteria of leading asset owners.