Amundi has launched an ETF to give investors access to US dollar denominated investment grade corporate bonds.
The Amundi Index US Corp SRI also applies environmental, social and governance selection filters, meaning it excludes issuers involved in alcohol, tobacco, military weapons, gambling, adult entertainment, and nuclear power.
Fannie Wurtz, managing director at Amundi ETF, said: "This exciting expansion to Amundi’s ETF fixed income range underlines our commitment to deliver passive solutions for our clients that are in-line with their social responsibility goals.
"As the first asset manager to sign the UN Principles for Responsible Investment, we believe the potential of socially responsible investments will continue to grow in the future, and we are committed to offering the relevant bond and equity tools adapted to these new requirements."
The ETF is a direct response to the growing demand for ESG criteria integration from investors who, along with being more ethically conscious, understand that ESG factors could potentially impact a company’s financial performance.
This ETF is offered at ongoing charges of 0.16 per cent and employs a fully transparent index methodology, tracking the Bloomberg Barclays MSCI Corporate SRI index.
Aj Somal, chartered financial planner at Birmingham-based Aurora Financial Planning, said: "This is an interesting innovation, and with the increase in interest from clients in relation to SRI funds, this could be potentially be of interest for clients."