What is the ESG index?
The US Environmental, Social, and Governance (ESG) 100 Index captures the Total Return Performance of the top ESG rated US listed companies, with a weighting scheme based on each company’s ESG Scores. Index values are disseminated on an intraday and end-of-day basis. The index is managed by BITA GmbH.
The index is revised quarterly on the third Friday of every March, June, September and December after market close.
Why trade ESG index CFDs with City Index?
- Invest in companies that make a positive impact through ESG
- Diversify your investment portfolio
- Trade leading ESG companies in the US without taking multiple equity positions
How companies qualify for ESG index status
Companies with a strong environmental commitment – be it climate change policies, greenhouse gas emission goals or carbon footprint – could find themselves featured on this index.
The social component of ESG involves people-related elements, such as company culture and issues that impact employees, customers, consumers, suppliers, the local community, and society at large.
Finally, a company with good corporate governance is judged as one with a strong board of directors who relate well to different stakeholders, run their business effectively, and align the management team's incentives with the company's success.
How to trade the ESG index
The 100 different companies listed in our ESG index cover a wide range of sectors. Trading the index is similar to trading wider indices such as the Dow Jones or the FTSE 100, in the knowledge you’re trading ethically sound stocks.
In the simplest terms, if you felt that US stocks on a general basis were overpriced, you could consider going short (or sell) on the ESG index, while if you felt a bull run was imminent you could go long (or buy) the index.
Trade the ESG index today with a trusted UK broker.
For more information on the index, please visit the BITA website.
Ways to trade the ESG index
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