BNP Paribas Asset Management today lists four passively managed equity ETFs from the BNP Paribas Easy range on the London Stock Exchange.
Sign up to our free newsletters
Article created by the editorial staff of ETFWorld.co.uk
Sabrina Principi, Global Head of ETF and Index Business Development at BNPP AM
The funds, all domiciled in Luxembourg and UCITS-compliant, track MSCI indices constructed using ESG and climate transition criteria. The common objective is to offer broad geographical equity exposure with a higher sustainability profile than the underlying indices, whilst maintaining a low tracking error.
Profile of the four ETFs
The four products share a physical replication structure (full or sample-based, depending on the liquidity of the underlying assets), systematic reinvestment of income and a maximum stated tracking error of 1%. Management is entirely passive. The three ranges developed (EMU, Europe, Pacific ex-Japan) have a TER of 0.15%, whilst the China fund, which includes up to 40% of A-shares via Stock Connect, has a TER of 0.26%.
1. BNP Paribas Easy MSCI China Min TE UCITS ETF (USD Acc)
- ISIN: LU2314312922
- LSE Ticker: CHINU
- TER: 0.26%
- Benchmark Index: MSCI China Select Filtered Min TE (NTR) – Bloomberg: MXCEFMNU Index
- ESG methodology: exclusion of companies with revenues exceeding certain thresholds from tobacco, oil & gas and thermal coal; exclusion of issuers with significant breaches of the UN Global Compact or involved in serious ESG controversies. The optimisation process requires the portfolio to have an ESG score higher than that of the MSCI China Index and a GHG intensity at least 20% lower.
- Key features: invests up to 40% of assets in mainland China A-shares via Stock Connect and in B-shares.
| Name | BNP Paribas Easy MSCI China Min TE UCITS ETF (USD Acc) |
| ISIN | LU2314312922 |
| SEDOL | BRJM1Z7 |
| Currency | GBP |
| Management Fee | 0.26% |
| Benchmark | MSCI China Select Filtered Min TE (NTR) |
| Name | BNP Paribas Easy MSCI China Min TE UCITS ETF (USD Acc) |
| ISIN | LU2314312922 |
| SEDOL | BRJM1Y6 |
| Currency | USD |
| Management Fee | 0.26% |
| Benchmark | MSCI China Select Filtered Min TE (NTR) |
2. BNP Paribas Easy MSCI EMU Min TE UCITS ETF (EUR Acc)
- ISIN: LU1291098827
- LSE Ticker: 0E4B
- TER: 0.15%
- Benchmark Index: MSCI EMU ESG Filtered Min TE (NTR) – Bloomberg: MXEFTENE Index
- ESG methodology: the same exclusion criteria (tobacco, oil & gas, coal, Global Compact, controversies) applied to the MSCI EMU universe. Optimisation ensures a higher ESG score and a GHG intensity at least 20% lower than the MSCI EMU index.
- Geographical limit: at least 75% of assets are invested in shares of companies headquartered in countries within the European Economic Area, excluding non-cooperative jurisdictions for tax purposes.
| Name | BNP Paribas Easy MSCI EMU Min TE UCITS ETF (EUR Acc) |
| ISIN | LU1291098827 |
| SEDOL | BRJM1W4 |
| Currency | GBP |
| Management Fee | 0.15% |
| Benchmark | MSCI EMU ESG Filtered Min TE (NTR) |
| Name | BNP Paribas Easy MSCI EMU Min TE UCITS ETF (EUR Acc) |
| ISIN | LU1291098827 |
| SEDOL | BDDX6K8 |
| Currency | EUR |
| Management Fee | 0.15% |
| Benchmark | MSCI EMU ESG Filtered Min TE (NTR) |
3. BNP Paribas Easy MSCI Europe Min TE UCITS ETF (EUR Acc)
- ISIN: LU1291099718
- LSE Ticker: EEUE
- TER: 0.15%
- Benchmark Index: MSCI Europe Select Filtered Min TE (NTR) – Bloomberg: MXEUEFMT Index
- ESG Methodology: applies the same exclusions and the same constrained optimisation approach (higher ESG score, GHG intensity at least 20% lower) to the MSCI Europe universe.
| Name | BNP Paribas Easy MSCI Europe Min TE UCITS ETF (EUR Acc) |
| ISIN | LU1291099718 |
| SEDOL | BR1FCP1 |
| Currency | GBP |
| Management Fee | 0.15% |
| Benchmark | MSCI Europe Select Filtered Min TE (NTR) |
| Name | BNP Paribas Easy MSCI Europe Min TE UCITS ETF (EUR Acc) |
| ISIN | LU1291099718 |
| SEDOL | BR1FCN9 |
| Currency | EUR |
| Management Fee | 0.15% |
| Benchmark | MSCI Europe Select Filtered Min TE (NTR) |
4. BNP Paribas Easy MSCI Pacific ex Japan Min TE UCITS ETF (EUR Acc)
- ISIN: LU1291106356
- LSE Ticker: EPEJ
- TER: 0.15%
- Benchmark Index: MSCI Pacific ex Japan ESG Filtered Min TE (NTR) – Bloomberg: MXPJEFMT Index
- ESG Methodology: same exclusion and optimisation rules applied to the developed Asia-Pacific universe (Australia, New Zealand, Hong Kong, Singapore). The active constraints are an ESG score that is at least 20% higher and a GHG intensity that is at least 20% lower than the MSCI Pacific ex Japan Index.
| Name | BNP Paribas Easy MSCI Pacific ex Japan Min TE UCITS ETF (EUR Acc) |
| ISIN | LU1291106356 |
| SEDOL | BRJM1T1 |
| Currency | GBP |
| Management Fee | 0.15% |
| Benchmark | MSCI Pacific ex Japan ESG Filtered Min TE (NTR) |
| Name | BNP Paribas Easy MSCI Pacific ex Japan Min TE UCITS ETF (EUR Acc) |
| ISIN | LU1291106356 |
| SEDOL | BRJM1S0 |
| Currency | EUR |
| Management Fee | 0.15% |
| Benchmark | MSCI Pacific ex Japan ESG Filtered Min TE (NTR) |
The ESG strategy: stringent constraints and a “Min TE” approach
All four ETFs track indices from the MSCI ESG Filtered Min TE family. The index construction process follows three steps.
- Sector and regulatory exclusions: companies generating more than a certain percentage of their revenue from tobacco, oil and gas, and thermal coal are removed, as are those subject to significant breaches of the principles of the United Nations Global Compact and those involved in serious ESG controversies.
- Constrained optimisation: the remaining companies undergo an optimisation process that simultaneously pursues two objectives: a weighted ESG score higher than that of the parent index and a greenhouse gas (GHG) intensity at least 20% lower than that of the same parent index.
- Minimisation of tracking error: the optimisation process keeps the tracking error relative to the parent index as low as possible, consistent with ESG constraints. The maximum tracking error stated for the funds is 1%.
BNP Paribas Asset Management also applies a Sustainable Investment Policy that integrates environmental, social and governance criteria into all stages of the investment process: from security selection to periodic monitoring.
Operational details
- Structure: all funds are sub-funds of BNP Paribas Easy ICAV, a multi-compartment investment company incorporated under Luxembourg law.
- Denomination currency: EUR for the EMU, Europe and Pacific ex-Japan funds; USD for the China fund. Quote feeds denominated in the fund’s currency and, in some cases, in GBP are available on the LSE.
- Trading frequency and liquidity: settlement takes place on T+2. Primary liquidity remains concentrated on Euronext Paris, where the funds have low average spreads.
- Listing on the LSE broadens access for UK institutional and retail investors and for those trading in sterling.
- Market makers and specialists: BNP Paribas has appointed authorised market makers to ensure continuous pricing on the LSE throughout the trading session.
Why the London Stock Exchange
The decision to list these four ETFs on the LSE addresses three specific needs:
Access to the post-Brexit UK market: following the UK’s exit from the European Union, UK investors wishing to maintain exposures denominated in EUR or USD via UCITS instruments find the London market to be a regulated and efficient hub.
Demand for passive ESG in the UK: the UK ETF market has seen sustained growth in inflows into passive ESG products. According to Morningstar data, net flows into ESG equity ETFs listed on the LSE more than doubled between 2024 and 2025.
Complement to the existing range: BNP Paribas Easy already has over 60 ETFs listed on the LSE. The four new listings complete the geographical equity offering with specific coverage of China, the Eurozone, Greater Europe and the Developed Pacific, all featuring ESG filters.
A low-cost offering for ESG equity exposure
The four ETFs combine a competitive total annual cost (0.15% for the three developed market funds, 0.26% for China) with an ESG methodology that goes beyond simple negative screening. The Min TE approach allows for a risk-return profile very close to that of the parent index, avoiding the significant deviations that sometimes characterise more restrictive ESG indices.
Investors can redeem units on a daily basis, on any day when banks are open in Luxembourg, and proceeds are systematically reinvested in the fund (accumulation class).
Outlook
The listing on the LSE of the four Min TE ETFs strengthens BNP Paribas Asset Management’s presence in the UK at a time when demand for passive ESG instruments remains high.
Source: ETFWorld.co.uk
Subscribe to Our Newsletter
