CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

EXCLUSIVE-BlackRock fast-tracks eviction of ESG violators from MSCI-linked ETFs

By Reuters_News

11:50, 9 March 2023

By Reuters_News

11:50, 9 March 2023

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Climate activists protest in front of a showroom that hosts BlackRock, ahead of the World Economic Forum (WEF) 2023, in the Alpine resort of Davos, Switzerland, January 15, 2023.
Climate activists protest in front of a showroom that hosts BlackRock, ahead of the World Economic Forum (WEF) 2023, in the Alpine resort of Davos, Switzerland, January 15, 2023.

Halves removal time to 45 days at most from 90 days

Move follows pressure from German wealth managers

Rule change covers $55.5 billion of assets

By Virginia Furness

- BlackRock Inc BLK.N, the world's biggest asset manager, has halved the time it takes for companies breaching certain environmental, social and governance-related standards to be removed from a number of its iShares exchange-traded funds.

BlackRock's "fast-exit" rule, which went live in December and has not previously been reported, will see such companies removed in 45 days at most rather than 90 days previously. The ruling covers 35 of its European listed ESG ETFs that track MSCI indices.

The change, which affects 'custom' funds containing $55.5 billion in assets, follows conversations with German wealth managers, who were keen to see poor ESG performance reflected more quickly across the ETFs, a BlackRock spokesperson said.

"We found that there was a desire to re-examine the timescales around the removal of companies with the worst controversies," the spokesperson added.






Reporting by Virginia Furness; Editing by Kirsten Donovan

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

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