ESGE
BNP Paribas Easy CAC 40 ESG UCITS ETF
Published by Radif Partners · Updated
Overview
BNP Paribas Easy CAC 40 ESG UCITS ETF (ESGE) tracks the CAC 40 ESG index and holds its constituents directly, a physical replication managed by BNP Paribas. Dividends are paid out to holders rather than reinvested, so ESGE suits investors seeking regular income. The fund is domiciled in FR, which determines the withholding tax treatment applied to its dividends. Annual charges come to 0.25% of assets, and the fund holds 1.2B under management. Over five years the fund returned 7.7% a year on average, against 14.6% over three years. It is eligible for the French PEA, and can also be held in a securities account or a German Depot. Its risk level is rated medium. Launched on 2005-01-14, the fund is denominated in EUR and has 21 years of track record. It is a UCITS fund, so it follows the European framework on diversification, liquidity and asset segregation. Because ESGE distributes, every payment is taxable in the year it is received, against the dividend allowance in a general account, while it stays sheltered inside an ISA or a SIPP. Domicile in FR sets the withholding the fund itself suffers on the dividends it receives, a cost absent from the stated fee but present in the return.
Ongoing charges of 0.25% place this fund 138th of 225 comparable funds, whose median is 0.19%. On £10,000 that costs about 25 a year and 250 over ten years at a constant amount, deducted daily and never visible on a statement: it shows up in the gap between the fund's return and its index's. At this level, neither low enough to be an argument nor high enough to be an obstacle, the decision rests elsewhere: on the index tracked, on the distribution policy, and on what your broker charges to buy.
Replication is physical: the fund actually holds the constituents of CAC 40 ESG, which makes its contents verifiable line by line in the issuer's report. Two points deserve attention. Securities lending first, practised by most physical funds to reduce costs: it earns a few hundredths of a point and creates an exposure to the borrower, covered by collateral, with the annual report stating the proportion lent. Rebalancing second: every change in the index's composition forces the fund to buy and sell, and those internal costs are not in the 0.25% headline. That is why two funds at the same price do not track their index with the same fidelity.
The fund is domiciled in FR, outside the two usual homes for European listed funds. Three checks come before buying: whether your broker lists it, since a fund outside the usual venues is not always dealable from a European account; what withholding the fund suffers on dividends it receives, which follows FR's treaties rather than your country's; and how your own tax authority treats it, an answer that can differ from the treatment of an Irish fund tracking the same index.
Income is distributed: the fund pays out the dividends it receives, usually one to four times a year. For a holder living off the portfolio that is what is wanted, since the income arrives without selling. For someone still accumulating it is a tax disadvantage in a taxable account: each payment is taxed in the year received, so the amount reinvested is reduced before it starts working again. Reinvesting by hand also costs a dealing commission each time and often leaves cash idle for want of the price of a whole unit. An accumulating class on the same index, where one exists, settles the question.
With 1.2 billion in assets and 21 years of history, this fund has the size and the record that make closure unlikely and the spread narrow. Three checks remain, once a year, none of which depends on the market. The ongoing charge, which an issuer revises without notice and whose gap to a competitor can invert. The tracking difference, the only figure that says whether replication stays faithful. And the methodology of CAC 40 ESG, which can change its selection or weighting rules without the fund's name moving, in which case what you hold has changed with nothing to announce it.
CAC 40 ESG applies a non-financial screen, and the first thing to establish is which one: a simple exclusion of a few activities leaves a portfolio very close to the starting index, while selecting the best-rated in each sector removes a large part of it. Both often carry the same kind of name. Two practical consequences: the deviation from the broad index becomes deliberate and can last for years, and the rating comes from a provider whose method changes, so the composition shifts without any public rule having moved. The exclusion list is in the prospectus, and that is the only document that binds.
Over one year the fund shows 12.7% and over five years 7.7% annualised, two figures close together, which is the most ordinary and least informative configuration: it does not say the fund is steady, only that the chosen start and end points resemble each other. Comparing these figures with another fund means something only if the index is the same; otherwise it is an index comparison dressed as a fund comparison.
0.25%
1.2B
1,203M EURMedium
148
Physical
Distributing
EUR
FR
CAC 40 ESG
BNP Paribas
2005-01-14 (21 years)
Contextual Analysis
Fund Size
With 1.2B in assets, this is a large fund, good liquidity and tight spreads.
Fee Positioning
A TER of 0.25% is in line with the market average (~0.35%).
Track Record
Launched in 2005-01-14, this fund has 21 years of history, long and reliable track record.
Risk Profile
Medium risk, good risk/return balance for a 5+ year horizon.
Performance
Returns Summary
| Period | Ann. Return | Cumulative |
|---|---|---|
| 1 Month (est.) | – | +1.0% |
| 3 Months (est.) | – | +3.0% |
| 6 Months (est.) | – | +6.2% |
| YTD (est.) | – | +5.1% |
| 1 Year | +12.7% | +12.7% |
| 3 Years | +14.6% | +50.3% |
| 5 Years | +7.7% | +44.8% |
| Since inception (21y) | +11.6% | +909.1% |
Key Facts
Fund Profile
Themes & Zones
Holdings
Risk
How to Buy This ETF
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About this ETF
The BNP Paribas Easy CAC 40 ESG UCITS ETF tracks the CAC 40 ESG index. It is managed by BNP Paribas using physical replication and follows a distributing distribution policy. The fund is denominated in EUR and domiciled in FR. It has a total expense ratio (TER) of 0.25%.
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Frequently asked questions
What do ESGE's 0.25% charges actually cost?
They are taken from the fund's value continuously and never billed separately: on £1,000 invested that is about £2.50 a year and roughly £25 over ten years at a constant amount. That is the only cost of the fund itself. Your broker's commission and the spread between buying and selling price come on top, and they weigh most on small frequent purchases.
Is ESGE genuinely diversified?
Less so than the number of holdings suggests. CAC 40 ESG weights its constituents by market capitalisation, so the largest companies make up a share of the fund far above their number, and that concentration deepens without any rule changing. The useful check is the weight of the top ten holdings, published monthly by BNP Paribas: that figure says how many companies the outcome actually depends on.
What should you re-check on ESGE once a year?
Three things, none of which depends on the market. The ongoing charge, which an issuer revises without notice and whose gap to a competitor can invert. The tracking difference, the only figure that says whether replication stays faithful. And the methodology of CAC 40 ESG, which can change its selection or weighting rules without the fund's name moving: in that case what you hold has changed with nothing to announce it.
Does ESGE lend out the securities it holds?
Probably in part: most physical funds lend securities to reduce their costs, and BNP Paribas publishes the proportion in the annual report. Lending income is worth a few hundredths of a point, shared between the fund and the issuer. The risk is the borrower's, covered by collateral worth more than the amount lent, and it appears in the prospectus rather than in the stated fee.
Does ESGE pay dividends?
Yes: the fund distributes and pays out the dividends it receives, on a calendar set by BNP Paribas. The payment is taxable in the year you receive it in most accounts, even if reinvested at once, and reinvesting by hand costs a commission each time. An accumulating class on the same index avoids that friction for anyone who does not need the income.
This ranking is for informational purposes only and does not constitute a recommendation to buy or sell any security. Displayed performance is simulated.