MSCI China Paris-Aligned Climate UCITS ETF is being launched by Franklin Templeton.
This strategy will be available on the Deutsche Börse Xetra from 15 June, as well as the Borsa Italiana and London Stock Exchange from 17 June, as part of the firm's Franking LibertyShares range.
With a focus on large and mid-cap Chinese equity securities, it will track the EU Climate Benchmark PAB and MSCI China Climate Paris-Aligned Indices.
The ETF could help investors reduce their exposure to transition and physical climate risks by doing so.
Dina Ting, head of global index portfolio management, and Lorenzo Crosato, ETF portfolio manager at Franklin Templeton, will manage the Ucits-compliant smart beta fund.
The total expense ratio for this strategy will be 0.22 percent.
"The ETF is a natural extension of the Paris-Aligned Climate ETF product range we launched two years ago and provides exciting growth opportunities in Chinese stock markets by investing in securities transitioning to a low carbon economy," Caroline Baron, head of ETF business development, EMEA, said.
"Aligned with the EU Climate Benchmark Regulation, it will additionally offer investors key standardisation, transparency and reporting benefits and should appeal to a wide range of European investors seeking more sustainable investment solutions."
By fLEXI tEAM