Alternative Investments/ESG: BlackRock Adds Two ESG Fixed Income ETFs

The new ETFs are categorized under Article 8 or 9 under the EU’s Sustainable Finance Disclosure Regulation (SFDR).

BlackRock has launched two new ETFs as an extension of its sustainability-focused fixed income ETFs range. The iShares € Green Bond Ucits ETF offers exposure to investment-grade green bonds, while the iShares Global Govt Bond Climate Ucits ETF offers investors exposure to government bonds while incorporating climate risk. (ETF Express)

iShares € Green Bond Ucits ETF

This ETF tracks the Bloomberg Barclays MSCI Euro Green Bond SRI including Nuclear Power Index offering exposure to over 300 EUR-denominated investment grade green bonds from 160 issuers across four sectors of the fixed income market.

Green bonds typically are used to finance green-and-clean investments in the areas of renewable energy, green buildings, wastewater management, energy efficiency, and public transport.

It features a total expense ratio of 20 bps.

iShares Global Govt Bond Climate Ucits ETF

This ETF tracks the FTSE Advanced Climate Risk Adjusted World Government Bond Index and offers exposure to global government bonds, taking the FTSE World Government Bond Index (WGBI) as a starting point.

Country-wise, the fund weights its investments under an assessment of climate risk faced by sovereigns using three pillars: physical risk, transition risk, and resiliency to climate change.


Brett Olson, Head of Fixed Income iShares in EMEA for BlackRock says: “We are committed to helping investors build sustainable portfolios that align with their specific goals. The AUM of our iShares EMEA fixed income range has grown by around 29% in the past year, as investors are increasingly using them as transparent, efficient building blocks to access the bond market sustainably.”

Related Story:  Fidelity Launches ETFs For Sustainable Corporate Bonds

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