BlackRock has launched a new exchange-traded fund (ETF) for euro-denominated sustainable corporate bonds.
The ETF tracks the Barclays MSCI Euro Corporate 0-3 year Sustainability ex-Controversial Weapons index.
The index focus on short-term euro bonds issued by companies in Europe, the Americas and Asia Pacific with an MSCI environmental, social and governance (ESG) rating of BBB or higher.
It is an addition to BlackRock’s ESG product line and comes in response to what the group said was a 61 per cent increase in global assets allocated to sustainable and ESG-focused investing.
MSCI rates companies based on 37 ESG factors including carbon emissions and involvement in chemical, biological and other military weapons.
The ETF is a physical replication of the index and has a total expense ratio of 25 basis points.
