In order to provide better returns on investment portfolios, it is BBVA Mexico together with S&P Dow Jones Indices announced the redesign of its ETF MEXTRAC which will now incorporate ESG criteria (environmental, social and corporate governance) in its strategy.
Within the framework of the relaunch that took place in the Mexican Stock Exchange (BMV), Manuel González, senior director for LATAM at S&P Dow Jones Indices, explained that this instrument has two important qualities, one that includes the selection of companies that they pay dividends as well as ESG issues.
“Dividend strategies are designed to generate income flows and offer capital preservation, this is very important due to the context we are experiencing in the midst of high inflation, this strategy allows us to face this situation, the index was launched on August 2 from 2021 and has a history from June 2015.”
He points out that the MEXTRAC ESG replicates the S&P/BMV IPC CompMX Profitable ESG Tilted TR Index and gives great importance to companies that comply with the UN Global Compact with averages of high dividend rates and high marketability.
Likewise, González highlighted that the index was already recognized and authorized by Amafore since it complies with the rules established by Consar.
Finally, Jaime Lázaro, General Director of Asset Management BBVA, reiterated that what they are looking for with this ETF is to be an alternative in the diversification of Mexican equities for all clients in Mexico.
And he pointed out that the MEXTRAC methodology is divided into three steps:
1. Dividend selection. Companies with high dividend rates, the last five years of high marketability and liquidity.
2. ESG filter. Companies that comply with the UN principles in the areas; human rights, labor standards, environment and anti-corruption.
3. Evaluation of corporate sustainability. It is over or under weighted with S&P DJI ESG Score by company, maintaining the neutrality of the group and industry sectors of GICS of the parent index.