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

https://dailyalts.com/wp-content/uploads/2020/02/39899401293_da00986c96_c-High-Yield-bonds-Lyxor.jpg

Lyxor launches three new ETFs for investors looking to invest in high yield bonds with a sustainability angle.

Lyxor’s new ETFs have a total expense ratio (TER) of 0.25%. This is the lowest TER among ETFs tracking High Yield indices with ESG filters. (ETFExpress)

The ETFs and their listing details are:

  • Lyxor Euro High Yield Sustainable Exposure UCITS ETF – Acc [Borsa Italiana (EHYS)]
  • Lyxor USD High Yield Sustainable Exposure UCITS ETF – Acc [Borsa Italiana; LSE (UHYS)]
  • And the Lyxor Global High Yield Sustainable Exposure UCITS ETF – Acc [Borsa Italiana (GHYU); LSE (GHYE)]

The new ETFs and sustainability

The new ETFs will track the Bloomberg Barclays MSCI Sustainable SRI indices, which apply sustainability filters to the bond universe to reduce exposure to controversial and low-ESG-rated issuers. It will filter out issuers with low ESG scores and/or who materially involve in controversial industries. Furthermore, they must have a minimum MSCI ESG rating of BBB.

The fund house introduced the world’s first Green Bond ETF in 2017 and believes that sustainable fixed income ETFs will attract growing investor interest.

“ESG rating in High Yield is one of the latest innovations in fixed income indexing,” said Philippe Baché, Head of Fixed Income at Lyxor ETF. “By applying an ESG lens to the High Yield bond universe, we are able to provide a significant move away from parent indices offering a potentially more conservative risk profile.”

Related Story:  BlackRock Makes Big ESG Push on ETFs

Image Credit (no changes were made): Flickr                     

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/2020/10/equines-5400385_640.jpg
Alternative Investments/ESG: Brunel Allots £1.2B ($1.55B) Sustainable Mandate To Three Managers

The Brunel Pension Partnership has picked Ownership Capital, RBC Global Asset Management, and Nordea Asset Management to manage its new Sustainable Equities Fund of around £1.2 billion ($1.55 billion). Brunel…

https://dailyalts.com/wp-content/uploads/2020/10/Crowdproperty-Completed-Project.jpg
FinTech: UK Development Lender CrowdProperty Notches £100M Of Loans
October 29, 2020     FinTech, News, Real Estate, Venture Capital

CrowdProperty, a leading crowdfunder/lender to the U.K. SME property sector, has lent over £100 million to development professionals. The funding had a beneficial impact on the UK economy because it…

https://dailyalts.com/wp-content/uploads/2020/10/RippleX-Screenshot.jpg
Digital Assets: Ripple Invests In Money Tap, A Subsidiary Of SBI Holdings, Japan
October 29, 2020     Digital Assets, News

Ripple Labs, the San Francisco-based technology company that facilitates cross-border payments through the use of its blockchain solutions via RippleNet, will invest an undisclosed amount in Money Tap. Money Tap…

https://dailyalts.com/wp-content/uploads/2020/10/cinema-64154_640.jpg
Artificial Intelligence: Apple Shells Out $50M For Video AI Startup Vilynx
October 29, 2020     Artificial Intelligence, News

Earlier this year, Apple (NASDAQ: AAPL) acquired Vilynx, a Barcelona-based startup that uses AI and computer vision technology to analyze a video’s visual, audio, and text elements. Reportedly, the iPhone…