State Street and DWS Drop ESG from S&P 500 ETFs to adapt to Fund Naving Rules

State Street Global Advisors and DWS have removed ESG from the names of their S&P 500 ESG ETFs to comply with the rules of sustainability product in Europe and the UK.

SPDR S&P 500 ESG leaders of $ 4.7 billion Result of a consultation from the index provider S&P.

The move comes after the European Securities and Markets Authority (ESMA) updated its guidelines for ESG Fund -Naming Rules in October 2024, where he set a deadline in November.

Meanwhile, Britain’s rules for sustainability information (SDR) had stated that the rules will come into force on December 2nd, but recently awarded ‘Temporary Flexibility’ until April 2 for companies to comply with the rules.

The changes to the ETFs are:

In a shareholder message, DWS said: “To avoid doubt, the investment target, investment policy, the risk profile and the fees for each fund remain unchanged.

“Each fund remains subject to the information requirements for a financial product in accordance with Article 8 in regulating sustainable financing (SFDR).”

All changes in the funds take effect on February 10th.

MSCI also renamed over 100 ESG indexes to comply with the new fund name rules last September.