Investor appetite for Environmental, Social and Governance (ESG) solutions across all asset classes has grown rapidly in recent years. Within fixed income, most of the focus for ESG investors is in the corporate bond space. In addition to providing exposure to companies operating in a variety of sectors, corporate bond ETFs offer choices such as targeting different maturities, currencies or credit quality.
Our core range of corporate bond ESG ETFs aim to avoid certain sectors by applying business involvement screens while also tilting the index in favour of companies with stronger ESG criteria. They provide investors with low-cost core elements for constructing diversified ESG portfolios. In addition, for EUR-denominated investment grade credit we also offer two actively managed solutions (full curve and under-five year) which use an intelligent multi-factor approach to offset some of the biases that ESG introduces to corporate bond indices.
But ESG is not limited to corporates. We also offer an actively managed ETF that aims to provide the performance of the European government bond market by investing in a portfolio of government and government-related bonds that also factors certain ESG criteria into the portfolio construction and maximises exposure to Green Bonds, subject to exposure and liquidity considerations.