Liquid Alternatives: Invesco Launches New Sterling Corporate Bond ETF With ESG

https://dailyalts.com/wp-content/uploads/2020/02/money-1084517_640-invesco-etf.jpg

Best of three worlds: Sterling Fixed Income+Passive+ESG

Invesco, the fund manager with $1.23 trillion in assets under management as of December 31, 2019, has launched in Europe a new, first-of-its-kind, sterling-denominated, corporate bond ETF with an ESG tilt. (ETFExpress) The Invesco GBP Corporate Bond ESG UCITS ETF (IGBE) trades on the London Stock Exchange. It has a total expense ratio (TER) of 0.10%.

Fund managers have so far given income investors in Europe the go-by on ESG criteria. However, investors now have a chance to invest with a positive ESG bias in Invesco’s new ETF.

What’s more, IGBE gives them this exposure through a low-cost, passive vehicle.

The ETF distills the expertise of Bloomberg Barclays for fixed income indexing and MSCI’s ESG research. Invesco provides the efficiency and liquidity of its ETF structure.

Negative exclusions

IGBE tracks the Bloomberg Barclays MSCI Sterling Liquid Corporate ESG Weighted Bond index. The Index excludes companies involved in tobacco, thermal coal, oil sands, civilian firearms or military weapons. Further, the weightage of issuers included in the index is tweaked to give higher exposure to those that have better ESG compliance.

Paul Syms, head of ETF fixed income product management, EMEA, at Invesco, commented: “The index this ETF follows has been designed to offer a higher ESG score than the broad corporate bond market but with similar sector exposures, credit ratings and risk characteristics.”

Gary Buxton, head of ETFs, EMEA, at Invesco, added: “As we continue building out our range of equity and fixed income ESG products, we are keen to ensure investors have not only a well-considered strategy but also an economical way to express their ethical views.”

Related Story:   Liquid Alternatives: Lyxor Launches High Yield Bond ETFs With ESG Exposure                                                

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2022/12/ezgif.com-gif-maker.gif
Venture Capital: Swedish Electric Self-Driving Truck Start-up Einride Lands $500M
December 8, 2022     ESG and Sustainability, News, Venture Capital

Einride, the Swedish electric self-driving truck start-up, announced a raise of $500 million comprising an equity-based $200 million Series C portion from investors including Northzone, EQT Ventures, Temasek, Swedish pension…

https://dailyalts.com/wp-content/uploads/2022/12/whatsapp-icon-g93b9d385e_640.jpg
FinTech: Brazil’s MercadoLibre To Process Business Payments On WhatsApp
December 8, 2022     FinTech, News

Pedro Arnt, CFO at Latin American e-commerce retailer and fintech firm MercadoLibre (NASDAQ: MELI) is in discussions with Meta (NASDAQ: META) to process payments in Brazil on the latter’s WhatsApp…

https://dailyalts.com/wp-content/uploads/2022/12/architecture-gc5023d3e5_640.jpg
Alternative Investments/Real Estate: Dimensional Launches Global Real Estate ETF
December 8, 2022     Alternative Investments, News, Real Estate

Dimensional Fund Advisors has added a real estate ETF to its ETF line-up. The Dimensional Global Real Estate ETF offers investors the opportunity to invest in a variety of US…

https://dailyalts.com/wp-content/uploads/2022/12/movie-projector-run-by-a-lunatic.jpg
Artificial Intelligence: Soon, A New York Festival For AI-Created Films
December 8, 2022     Artificial Intelligence, News

Runway ML, the company behind text-to-image AI system Stable Diffusion, is hosting a festival of short films made using AI. Films with a runtime of between one and 10 minutes…