Varma invests €400m in active ETF containing European companies

Written by Adam Cadle

18/11/2025

Varma is to invest €400m in an ETF fund focused on European companies, tailored for the insurer, whose operating principles include moderate risk-taking through active portfolio management.

The goal of the new exchange-traded ETF fund is to generate a better return compared to the index with a well-limited risk. The objective is achieved by actively managing part of the portfolio based on the investment outlook. Typically, ETFs are passive funds that seek to track a selected index without deviating from it.

“We invest in this ETF because its active share allows for a prudent level of risk-taking and our goal is to exceed the return on the index," Timo Sallinen, head of listed investments at the insurer, said.

The fund invests in shares of European companies that are included in the MSCI ACWI Select Climate 500 index. The name of the new ETF is Nordea ETF ICAV – BetaPlus Enhanced European Select Equity UCITS. The fund is managed by Nordea Asset Management.

The fund's objective is to reduce investors' exposure to greenhouse gas emissions and to increase the share of companies that have set emission reduction targets in accordance with the Science Based Targets initiative (SBTi). Varma is committed to increasing the number of these companies in its investment portfolio.

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