Deutsche Bank has launched the db x-trackers S&P US Carbon Efficient ETF on the London Stock Exchange.
The ETF tracks the S&P US Carbon Efficient index, which is based on the performance of large cap US companies with relatively low carbon emissions, while seeking to replicate the return of the S&P 500.
The index has been developed by S&P in conjunction with Deutsche Bank and TruCost, a provider in carbon footprint analysis. Initial access to this index is available exclusively through db x-trackers ETFs.
Db x-trackers UK head Manooj Mistry says: "This is the first time that investors have had the opportunity to track the S&P 500 with a 50% lower carbon footprint and 60% lower greenhouse gas emissions."
He explains that there has been a significant level of interest in the US and green issues, while both feature prominently on the current global agenda. He adds that some experts suggest the US is well-positioned to move out of recession and return back to growth faster than other developed markets, offering investors substantial growth opportunities.
The index weightings will be based on a process which analyses the carbon footprint of each company, while ensuring the carbon efficient version replicates the original S&P500 index as closely as possible.
The ETF, which has an all-in fee of 0.50%, can be traded on the LSE on sterling and US dollars.
S&P managing director of index services Robert Shakotko says: "Investors can now directly trade the most widely followed barometer of the US market, but with an eye toward the environment."
