Summary
STOXX ESG Target TE Indices aim to provide a low tracking error to the benchmark index while ensuring an improved ESG score. The weighting of each constituent security is determined through an optimization process that is designed to ensure diversification and uses Axioma's Risk Model and Optimizer to construct the indices. Companies that are non-compliant based on the ISS ESG’ Norms-based research assessment or are involved in controversial weapons are not eligible for selection. Additional exclusion filters are applied, screening companies for involvement in tobacco production and distribution, thermal coal extraction and power generation, small arms manufacturing, military contracting, unconventional oil and gas exploration and production, high ESG risk, and ESG controversies.
This index applies screens in alignment with the ESMA guidelines on funds’ names using ESG or sustainability-related terms, which include controversial weapons, Tobacco, Coal (>1%), Oil fuels (>10%), Gaseous fuels (>50%/ Power generation), UNGC principles / OECD guidelines.
Index Guides, Benchmark statement, and other reports are available under the Data tab.
Details
Top 10 Components
| Mitsubishi UFJ Financial Group | JP |
| Tokyo Electron Ltd. | JP |
| Commonwealth Bank of Australia | AU |
| Toyota Motor Corp. | JP |
| Sumitomo Mitsui Financial Grou | JP |
| Advantest Corp. | JP |
| Murata Manufacturing Co. Ltd. | JP |
| Softbank Group Corp. | JP |
| Mizuho Financial Group Inc. | JP |
| Fast Retailing Co. Ltd. | JP |