Global investment manager Northern Trust Asset Management announced the launch of two new climate-focused ETFs, the FlexShares Developed Markets Low Volatility Climate ESG UCITS ETF (QVFD) and the FlexShares Developed Market High Dividend Climate ESG UCITS ETF (QDFD). The launch of the new investment products marks the first FlexShares ETFs by Northern Trust in the European market, with more planned in the coming months.

Marie Dzanis, Head of Europe, Middle East and Africa (EMEA) at Northern Trust Asset Management, said:

“We’re pleased to present the first FlexShares products in Europe, which reflect Northern Trust Asset Management’s three decades of experience in managing sustainability-focused investment strategies. Actively designed with the transparency of indexing, these two ETFs are built specifically to fit within EMEA investors’ evolving needs to help manage portfolio volatility and deliver income in a low yield environment while doing so with a focus on quality.”

FlexShares partnered with index provider STOXX to develop benchmarks for the new ETFs. The FlexShares Developed Markets Low Volatility Climate ESG UCITS ETF tracks the iSTOXX Northern Trust Developed Markets Low Volatility Climate ESG Index. The ETF features stocks that exhibit lower overall absolute volatility cash flow, combined with factors to maximize quality, improve ESG ratings and create minimum variance.

The FlexShares Developed Market High Dividend Climate ESG UCITS ETF is an income fund that tracks the iSTOXX Northern Trust Developed Markets High Dividend Climate ESG Index. The ETF features stocks that exhibit a high potential to generate income, integrating factors that maximize quality, improve ESG ratings and enhance dividend yield.

The ETFs launched with listings on the London Stock Exchange and EuroNext and are available in the UK, Ireland, Sweden, Germany and the Netherlands.

Darek Wojnar, Global Head of Funds, ETFs & Managed Accounts, said:

“FlexShares has been leveraging Northern Trust Asset Management’s investment capabilities since our initial US launch in 2011. As a global asset manager, we are pleased to extend our deep principle-based culture and collaborative approach with leading market expertise to complement our existing strategies in the European marketplaces.”

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