- ESGO seeks to offer exposure to an equal-weighted basket of 25 ESG screened companies that are active in the gold mining industry.
- The ETF allows investors to access a “brown” industry in a potentially greener way, minimising the ESG-related risks associated with gold miners.
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September 2023, London
HANetf, Europe’s first and only independent white-label UCITS ETF and ETC platform[1], and leading provider of digital asset ETPs, is thrilled to announce that its AuAg ESG Gold Mining UCITS ETF (ESGO) has registered increase interest from institutional investors and reached $35 million in assets under management (AUM). [2]
This achievement further solidifies ESGO's position as a preferred choice for investors seeking exposure to gold mining companies with a strong focus on environmental, social, and governance (ESG) factors.
ESGO is designed to provide investors with a unique opportunity to align their gold mining exposure with ESG principles. The ETF aims to replicate the performance of the Solactive Global Gold Mining Index (ticker: SOLGLDM), which provides equal-weighted exposure to the 25 gold mining stocks with the best-in-class ESG risk scores.
Gold mining requires shifting large amounts of earth. To create a 400 troy ounce gold bar requires digging about 5,000 tonnes of earth.[3] Moving such amounts of earth obviously means a notable greenhouse gas emissions. ESGO’s screen accounts for the energy use of gold miners, resulting in exposure to companies in the sector with lower carbon footprints.
ESGO’s screen also reduces risk associated with extracting gold from the dug-up earth. This process requires the use of toxic chemicals such as cyanide and mercury. As a result, there is a risk of these chemicals leaking into local ecosystems through negligence. ESGO tries to minimise exposure to this risk by screening for companies with the strongest social and governance scores.
Hector McNeil, Co-CEO and Co-Founder of HANetf, comments: "We are delighted to witness ESGO's rapid growth and achievement of surpassing $35 million in AUM. This milestone reflects the increasing demand for ESG-focused investment solutions within the gold mining sector. ESGO offers investors exposure to companies that not only prioritize responsible mining practices but also demonstrate strong ESG credentials."
AuAg ESG Gold Mining UCITS ETF (ESGO) seeks to offer exposure to an equal-weighted basket of 25 ESG screened companies that are active in the gold mining industry. The fund uses Sustainalytics to screen the mining universe for their ESG credentials, attributing a risk score based on their findings. Only the top 25 lowest ESG Risk companies are included within the index.
All performance figures are showing net data. Past performance is not indicative of future performance and when you trade ETFs, your capital is at risk.