The Yuanta FTSE4Good TIP Taiwan ESG ETF delivers quality sustainability practice and excellent returns. The ETF is also recognized in the Stewardship category for its achievements in ESG engagement and governance.

This innovative ETF was launched in 2019 and is based on the FTSE4Good Tip Taiwan ESG Index, jointly developed by Taiwan Index Plus and the FTSE’s Russell Index a year earlier. The Index selects sustainable companies using existing FTSE Russell ESG methodologies and financial targets based-off a trailing company ROE.

Companies are scored on the three ESG pillars broken down into five environmental themes, five social themes, and four governance across 300 topics to give a cumulative ESG score. All companies must lodge a Corporate Social responsibility Report to be eligible and are then ranked according to ROE with semi-annual reviews.

Tracking error was robust with a R^2 more than 85%. This ETF has been popular with investors as funds under management have already reached 7.8 billion TWD as of the end of 2020.

Since its launch, the ETF was a strong outperformer and contributed to a surge of interest in ESG by corporates in Taiwan and the investing public. We also recognize that the strict ESG compliance and rating regime has acted as a powerful stewardship tool to raise industry wide ESG practices across corporations and the investment community.

This ETF has been reviewed by four industry veterans of the Benchmark judging committee.