Vanguard Launching Environmental Stock Fund
The fund should start trading in the fourth quarter with an expense ratio of 0.75% for Investor Shares and 0.60% for Admiral Shares.
Vanguard plans to launch an actively managed environmental equities fund to invest in companies involved in decarbonization and derive at least half their revenue from work considered to be making a positive contribution to environmental change.
The Vanguard Global Environmental Opportunities Stock Fund will hold a concentrated portfolio and be managed by Ninety One, an active investment manager with a track record in environmental, decarbonization and global investing, the mutual fund company said Tuesday.
“Vanguard has been thoughtful and deliberate in building out our ESG lineup by ensuring each new fund addresses investors’ enduring needs,” said Dan Reyes, head of the Vanguard Portfolio Review Department. “We are confident that Ninety One’s differentiated approach to global ESG investing will add long-term value for risk-tolerant investors who have a preference for environmental investing.”
The Global Environmental Opportunities Stock Fund, the first Vanguard fund that Ninety One will advise, will target companies seeking to accelerate the transition to a low-carbon world.
“The fund is designed for environmentally conscious investors who have a high tolerance for risk and want to augment a broadly diversified portfolio with a satellite position,” Vanguard said.
The fund is expected to launch in the fourth quarter of 2022 with an expense ratio of 0.75% for Investor Shares and 0.60% for Admiral Shares, compared with the industry average of 0.99% for similar funds, the company said. Minimum investments are $3,000 for Investor Shares and $50,000 for Admiral Shares.
Ninety One manages about $160 billion globally, Vanguard said.