EEMX Profile
The SPDR MSCI Emerging Markets Fossil Fuel Reserves Free ETF aims to provide investors with exposure to large- and mid-cap companies in emerging markets while aligning with sustainable investment principles. The fund is designed to track the MSCI Emerging Markets Fossil Fuel Reserves Free Index, which excludes companies that hold significant fossil fuel reserves. This index represents a subset of the MSCI Emerging Markets Index, focusing on firms that are not involved in the extraction or production of fossil fuels.
Under normal market conditions, the fund commits to investing at least 80% of its total assets in the securities that make up the underlying index and in depositary receipts based on these securities. By adhering to this investment approach, the ETF aims to provide a targeted exposure to emerging market equities while excluding those companies whose business models are heavily reliant on fossil fuel reserves. This strategy aligns with broader environmental goals and reflects a commitment to sustainable investing practices.
The MSCI Emerging Markets Fossil Fuel Reserves Free Index is constructed to measure the performance of companies in emerging markets that are not involved in fossil fuel extraction or reserves. This exclusionary screening process helps investors avoid exposure to sectors that contribute significantly to greenhouse gas emissions. The index includes a diverse range of industries within the emerging markets, ensuring broad representation across various sectors while adhering to its sustainability criteria.
The SPDR MSCI Emerging Markets Fossil Fuel Reserves Free ETF provides a way for investors to engage with emerging markets' growth potential while supporting environmental sustainability. The ETF's focus on excluding fossil fuel reserves aligns with global trends toward cleaner energy and responsible investment. By integrating ESG considerations into its investment process, the fund caters to investors who seek both financial returns and positive environmental impact, offering a solution that balances these objectives in a dynamic and growing market.
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