The MSCI Factor ESG Target Indexes build upon the MSCI’s current range of factor indexes which cover minimum volatility, quality, value and multi-factor strategies.
“These products are designed to allow clients to more effectively incorporate ESG integration into Factor focused portfolios,” the MSCI said in a statement on Thursday.
There is more than $214bn in assets benchmarked to the current MSCI Factor Indexes.
Diana Tidd, head of index at MSCI, said: “MSCI is seen as a thought leader in ESG and Factor Investing, and this new suite of indexes helps our clients integrate ESG while still focusing on the benefits of factor Investing.”
The MSCI Factor ESG Target Indexes will have an ESG score around 20% higher than that of the parent index.
