There is no one-size-fits-all approach to ESG
We know that client preferences around ESG can vary, and there are different ways to incorporate those preferences into an investment strategy.
How does Vanguard approach ESG?
We offer a selection of ESG products that employ different approaches.
Avoid
We offer products that avoid, or reduce exposure to specific industries such as firearms, tobacco, fossil fuels, gambling or adult entertainment, while seeking to achieve a market-like return.
Allocate
We offer funds which aim to deliver sustainable, long-term growth for investors who prefer active management and hope to achieve certain ESG outcomes.
Integrate
Whilst we offer actively managed funds which are not built with specific ESG outcomes in mind, the fund managers assess the materiality of risks, including ESG risks, as a part of their investment process.
Engage
Our global Investment Stewardship team engages with portfolio companies on behalf of our equity index funds and ETFs.
ESG index products
Some investors want to limit their exposure to certain industries or business activities
that pose heightened ESG-related risks, or conflict with their ESG preferences.
Vanguard offers products that avoid, or reduce exposure to, specific industries while still seeking to achieve a market-like return.
See all our ESG exclusionary funds
Equity ESG exclusion funds and ETFs
Vanguard's ESG equity index products help investors avoid or reduce exposure to controversial business activities and/or conduct.
ESG Developed World All Cap Equity Index Fund
ESG Emerging Markets All Cap Equity Index Fund
Fixed income exclusion funds and ETFs
Vanguard’s ESG fixed income exclusionary index products help investors avoid or reduce exposure to controversial business activities and/or conduct.
ESG Global Corporate Bond Index Fund
Investment risk information
The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.
Some funds invest in emerging markets which can be more volatile than more established markets. As a result the value of your investment may rise or fall.
Investments in smaller companies may be more volatile than investments in well-established blue chip companies.
Funds investing in fixed interest securities carry the risk of default on repayment and erosion of the capital value of your investment and the level of income may fluctuate. Movements in interest rates are likely to affect the capital value of fixed interest securities. Corporate bonds may provide higher yields but as such may carry greater credit risk increasing the risk of default on repayment and erosion of the capital value of your investment. The level of income may fluctuate and movements in interest rates are likely to affect the capital value of bonds.
The Funds may use derivatives in order to reduce risk or cost and/or generate extra income or growth. The use of derivatives could increase or reduce exposure to underlying assets and result in greater fluctuations of the Fund's net asset value. A derivative is a financial contract whose value is based on the value of a financial asset (such as a share, bond, or currency) or a market index.
Some funds invest in securities which are denominated in different currencies. Movements in currency exchange rates can affect the return of investments.
For further information on risks please see the “Risk Factors” section of the prospectus.
Important information
This document is directed at professional investors and should not be distributed to, or relied upon by retail investors.
For further information on the fund's investment policies and risks, please refer to the prospectus of the UCITS and to the KIID before making any final investment decisions. The KIID for this fund is available, alongside the prospectus via Vanguard’s website.
The information contained in this document is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so. The information in this document is general in nature and does not constitute legal, tax, or investment advice. Potential investors are urged to consult their professional advisers on the implications of making an investment in, holding or disposing of shares of, and the receipt of distribution from any investment.
Vanguard Investment Series plc has been authorised by the Central Bank of Ireland as a UCITS and has been registered for public distribution in certain EEA countries and the UK. Prospective investors are referred to the Funds' prospectus for further information. Prospective investors are also urged to consult their own professional advisers on the implications of making an investment in, and holding or disposing shares of the Funds and the receipt of distributions with respect to such shares under the law of the countries in which they are liable to taxation.
The Manager of Vanguard Investment Series plc is Vanguard Group (Ireland) Limited. Vanguard Asset Management, Limited is a distributor of Vanguard Investment Series plc.
The Manager of the Ireland domiciled funds may determine to terminate any arrangements made for marketing the shares in one or more jurisdictions in accordance with the UCITS Directive, as may be amended from time-to-time.
For investors in Ireland domiciled funds, a summary of investor rights is available in English, German, French, Spanish, Dutch and Italian.
The fund(s) referred to herein are listed in the AFM register as defined in section 1:107 Dutch Financial Supervision Act (Wet op het financieel toezicht).For details of the Risk indicator for each fund listed, please see the fact sheet(s) which are available from Vanguard via our website.
Issued by Vanguard Group (Ireland) Limited which is regulated in Ireland by the Central Bank of Ireland.
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