Legg Mason is prepping to launch its first two environmental, social and governance (ESG) exchange-traded funds (ETFs) through affiliate ClearBridge Investments.
The firm has registered the ClearBridge Dividend Equity Strategy ESG ETF and the ClearBridge Large Cap Growth ESG ETF with the Securities and Exchange Commission.
The ClearBridge Dividend Growth Equity Strategy fund will primarily invest in dividend-paying stocks or similar instruments that provide potential for income growth and capital appreciation, as well as meet its ESG criteria.
The ClearBridge Large Cap Growth ESG ETF will seek long term capital appreciation by investing in large cap companies that convey promising growth characteristics.
The investment adviser for both funds is Legg Mason Partners Fund Advisor and the subadvisor is ClearBridge Investments.
‘We are pleased to leverage ClearBridge’s proprietary ESG investment process in other actively managed vehicles,’ said a Legg Mason spokeswoman.
‘This is consistent with our strategy of making our investment capabilities available in a wide variety of vehicles to meet investor needs.’
In December, Nuveen launched five ESG ETFs under the NuShares ESG ETF wrapper, which track the performance of the US stock market across a number of market capitalizations and investment styles while using ESG screening.