BNP Paribas Asset Management lists two ESG ETFs from its Easy range on the London Stock Exchange

the BNP Paribas Easy MSCI Emerging Min TE (ISIN: LU1291097779, TER: 0.27%) and the BNP Paribas Easy MSCI USA Min TE (ISIN: LU1291104575, TER: 0.15%).

The context: BNPP AM’s UK strategy

Today’s listing forms part of an expansion into the UK market that began in October 2024, when BNPP AM made its debut on the London market with four ESG equity ETFs, sub-funds of its Irish Collective Asset Management Vehicle (ICAV). By November 2025, a further fourteen ETFs had been added, including active strategies, defence-related themes and fixed-income products. The two funds listed today, however, belong to the long-standing Luxembourg SICAV structure of the Easy range, already distributed on Euronext Paris, Deutsche Börse Xetra, Borsa Italiana and SIX Swiss Exchange.

As at 31 December 2025, BNPP AM managed $61.6 billion in ETF assets, with a European market share of 1.6%. The company has stated its aim to launch over 75 new ETFs during the current period, seeking to almost double its current European range of 78 products.

BNP Paribas Easy MSCI Emerging Min TE — ISIN LU1291097779

TER: 0.27% | Accumulation | Physical replication (full or optimised)

The ETF tracks the MSCI Emerging Select Filtered Min TE (NTR) index (Bloomberg: MXEMEFMT), constructed on the basis of the broader MSCI Emerging Markets Index.

The fund has assets of approximately €1.06 billion and is the only ETF that tracks the MSCI Emerging Markets Select Filtered Min TE. It employs full physical replication, purchasing all the index constituents, with dividends accumulated and reinvested.

The portfolio comprises approximately 961 securities, of which 956 are equities. The top ten holdings — Taiwan Semiconductor, Samsung Electronics, Tencent, SK Hynix, Alibaba, HDFC Bank, China Construction Bank, Reliance Industries, Hon Hai Precision and MediaTek — together account for approximately 33% of the fund’s assets.

The fund invests up to 40% of its assets in Chinese Class A shares via the Stock Connect and/or in ‘China B-Shares’, a significant consideration for investors wishing to assess the specific risk associated with accessing onshore Chinese equity markets.

The index methodology

The MSCI Emerging Markets ESG Filtered MIN TE Index is constructed from the MSCI Emerging Markets Index, its parent index, and includes large- and mid-cap stocks from global emerging markets. The selection excludes companies involved in sectors with potential negative ESG impact — tobacco, oil & gas, thermal coal power generation — those in significant breach of the UN Global Compact principles, and those with serious ESG controversies. In addition, the index excludes, based on ESG scores, 20% of the stocks in the parent index, and in the final stage optimises the remaining portfolio to minimise tracking error relative to the MSCI Emerging Markets.

The optimisation process imposes two quantitative constraints: a portfolio ESG score higher than that of the parent index and a greenhouse gas (GHG) intensity at least 20% lower than that of the parent index.

Index constituents are also monitored monthly for involvement in ESG controversies. Securities that receive an MSCI ESG Controversy Score of 0 — defined as ‘Red Flag companies’, i.e. those subject to very serious ongoing controversies directly attributable to their actions, products or operations — are removed from the index.

The fund’s maximum tracking error relative to the index is set at 1%. When the fund invests in a sample of securities (optimised replication) rather than in all components, the actual tracking error may exceed this threshold.

BNP Paribas Easy MSCI USA Min TE — ISIN LU1291104575

TER: 0.15% | Accumulation | Physical replication (full or optimised)

The ETF tracks the MSCI USA Select Filtered Min TE (NTR) index (Bloomberg: MXUEFMNE), constructed on the MSCI USA Index.

The fund has assets under management of approximately €1.27 billion. It employs full physical replication and reinvests dividends into the fund. With a TER of 0.15%, it ranks among the most cost-effective solutions for accessing the US equity market with integrated ESG filters.

The index methodology

The MSCI USA Select Filtered Min TE Index is constructed from the MSCI USA Index and includes large- and mid-cap stocks from the US equity market. It aims to represent the performance of a strategy that excludes companies based on ESG and climate criteria, minimising tracking error relative to the parent index through an optimisation process.

Sector exclusions and GHG intensity thresholds are similar to those of the Emerging index described above: no exposure above certain revenue thresholds for tobacco, oil & gas and thermal coal; exclusion of companies with ESG scores in the bottom 20% of the universe; greenhouse gas emissions intensity targets at least 20% lower than the MSCI USA.

Common features and risk profile

Both funds apply the Sustainable Investment Policy of BNP Paribas Easy, which integrates environmental, social and governance considerations at every stage of the investment process: from the construction of the investable universe, through monthly monitoring of controversies, to rebalancing. Both products reinvest income, without distributing dividends to investors.

It should be noted that the extra-financial strategy of the underlying indices entails specific methodological risks. The ESG data used for security selection is derived from estimates and models subject to revision; exclusion criteria change over time; periodic rebalancing may generate implicit costs and impact tracking error. These factors, common to all products tracking filtered ESG indices, should be taken into account by investors in their overall assessment of the product.

The BNP Paribas Easy Min TE range: an established family

The two ETFs listed today are not new products: they have existed and been distributed in Europe for years, already listed on Euronext Paris, Xetra and Borsa Italiana. The listing on the LSE represents an extension of the distribution scope, in line with BNPP AM’s stated strategy of strengthening access to the UK market.

The latest listings cover the entire BNP Paribas Easy range, reflecting its breadth with strategies ranging from enhanced alpha (active) to defensive, through to fixed income, with the aim of meeting a wide spectrum of investor needs.

The Min TE family — an acronym for Minimum Tracking Error — represents BNPP AM’s response to a specific demand: to offer ESG exposure without deviating substantially from the traditional benchmark. The approach differs from more selective strategies such as SRI or Paris-Aligned Benchmarks (PAB), accepting a broader investable universe in exchange for a limited deviation from unfiltered benchmark indices. For institutional investors with mandates tied to traditional benchmarks but with an obligation or preference for ESG integration, this structure offers a viable solution without sacrificing significant index tracking.