Sustainability is a broad term that can encompass environmental, social, and governance (ESG) principles. The concept of sustainable finance has gained traction in recent years as investors look to put their money into companies and projects that positively impact the world. Here's what you need to know about EEMX and why this ETF is unique.
Sustainability Matters: Why EEMX Is Worth a Look
The SPDR MSCI Emerging Markets Fossil Fuel Reserves Free ETF (EEMX) is one of the few funds focusing on sustainability in emerging markets. The fund invests in global companies working to reduce their reliance on fossil fuels and improve their ESG profiles. With the world increasingly focused on environmental and climate-related challenges, EEMX is worth a closer look.
The fund tracks the MSCI Emerging Markets ESG Select Leaders Index, which includes companies that are leaders in their respective industries regarding ESG principles. To be included in the index, companies must score well on various metrics, including carbon emissions, water management, and employee relations.
The Fund for a Sustainable Future
Investors conscious of the need to address climate change, fossil fuel reduction, and other global challenges may want to consider EEMX as a way to tap into the growth potential of emerging markets while also supporting companies that are leaders in sustainability. This ETF offers a unique way to play both trends and could be a compelling option for long-term investors.
Given the fund's focus on ESG principles, it will likely continue attracting attention from sustainable investors in the years ahead. Firms in the EFT include those in Latin America, China, Taiwan, India, Brazil, Mexico, South Korea, and other countries around the globe.