The US-listed investment titan is expanding its European sustainable ETF range with a new Japan-focused fund.

BlackRock has launched a new exchange-traded fund that offers exposure to Japanese companies with high environmental, social and governance ratings.

Companies included in the iShares MSCI Japan SRI UCITS ETF are evaluated by MSCI based on the most pertinent ESG themes specific to their sub-industry, and rated between AAA (highest) and CCC (lowest). Securities are only included in the index if they achieve a grading of A or above.

The fund excludes companies involved in alcohol, tobacco, gambling, civilian firearms, military weapons, nuclear power, adult entertainment and genetically modified organisms.

“This fund launch is particularly timely given that investor sentiment towards Japan is strengthening,” said Tom Fekete, global head of iShares product at BlackRock. “The combination of Bank of Japan’s commitment to their easing programme, positive corporate earnings helped by the weaker yen, and asset flows turning more positive is triggering some investors to build Japanese exposure into their portfolios.”

BlackRock manages over $180 billion of assets across ESG-integrated and impact funds globally.