Sumitomo Mitsui Trust Asset Management Co., Ltd. (Representative Director and President: Yoshio Hishida; hereinafter "SuMi TRUST") is pleased to announce the SMT ETF Carbon Efficient Index Japan Equity (TSE stock code: 2642) (hereinafter, “the ETF”) will be listed on the Tokyo Stock Exchange on June 23, 2021.
The ETF is based on the Tokyo Stock Price Index (TOPIX) constituents as its universe, with the similar risk/return characteristics as TOPIX, but with a 19% improvement in carbon efficiency (carbon emissions per unit of revenue) (as of March 31, 2021*). It can be expected to be useful as a tool for forming new core Japanese equity portfolios that also address climate change risk, and as an extension or alternative to TOPIX-linked funds. In addition, the ETF can address the concerns of investors who wish to contribute to society through their investments but find it difficult to see how they are contributing. (*According to S&P Dow Jones Indices LLC.)
As a responsible institutional investor, SuMi TRUST is committed to addressing ESG (Environment, Social and Governance) issues from a global perspective through constructive dialogue with companies in its portfolio and collaboration with international organizations promoting ESG efforts in various fields. The ETF is a symbolic product that is in line with such efforts taken by us and, after more than two-year track record of investing in the index, SuMi TRUST have decided to offer this product in the form of an ETF in order to
make it available to as many investors as possible. SuMi TRUST is committed to pursuing new forms of asset management that meet the needs of the times and aspirations for the future.