Lyxor, a member of the Société Générale Group, has listed the largest ESG exchange-traded fund ( ETF ) on the Singapore Exchange ( SGX ) following the switch of its China equity ETF to an underlying index that tracks environmental, social and governance metrics.

The Lyxor China Enterprise ( HSCEI ) UCITS ETF, which has been listed on the Singapore Exchange since 2006, now tracks the MSCI China Select ESG Rating Trend Leaders Net Total Return Index, making it the largest ESG ETF listed on the exchange with US$328 million of assets under management.

To reflect the change, the ETF has been renamed Lyxor MSCI China ESG Leaders Extra ( DR ) UCITS ETF.

The new index tracked by the Lyxor ETF combines a set of very stringent business activities exclusions with an ESG best-in-class approach, aiming at selecting companies with a robust ESG profile. Overall, the index targets a coverage of 50% of the underlying MSCI China Index.

Christopher Friese, head of Lyxor ETF Asia-Pacific at Société Générale, says: “This index switch meets the ever-increasing interest coming from Asian investors in ESG exposures on the China equity market. We’re committed to providing Asian investors with ESG investment solutions listed locally. This ETF now also qualifies as an excluded investment product ( EIP ), making it more accessible to retail investors.”