MSCI launches four ESG factor indices

In response to client demand

MSCI has launched four ESG factor target indices in response to increasing demand from clients.

The MSCI Minimum Volatility, Quality, Value and Multiple-Factor ESG Target indices are designed for investors to gain exposure to the firm's existing factor indices, on which they are based, while integrating an environmental, social and governance (ESG) focus into their strategy. Rebalancing twice a year, the indices will look to mitigate short-term and long-term ESG risks by not investing in controversial weapons, while the framework enables client specific customization. What has been driving the boom in passive ESG product launches? Diana Tidd, head of index at MSCI, said: "We ...