Alternative Investments/ESG: RBC iShares Launches Sustainable Fixed Income ETFs

The ETFs began trading on the Toronto Stock Exchange last week.

RBC iShares expanded its range of ETFs with the launch of four new fixed income ETFs of which two have a sustainability focus. These are the iShares ESG Advanced 1-5 Year Canadian Corporate Bond Index ETF (XSHG) and iShares ESG Advanced Canadian Corporate Bond Index ETF (XCBG), both of which extend sustainable coverage to bonds. (Intrado GlobeNewswire)

Both the new ETFs allow investors exposure to the Canadian dollar investment grade corporate bond market, and can be included in a portfolio as core fixed income building blocks with a sustainable skew.

They track indices that provide efficient exposure to companies demonstrating more sustainable business practices relative to their industry peers, while also excluding issuers from industries with elevated sustainability-related risks.

The annual management fee for both ETFs is 0.15%.

Suitable for a low-interest rate regime and sustainability concerns

“Through the launch of these new ETFs, RBC iShares continues to deliver the broadest range of sustainable ETFs in Canada, to support portfolio construction among Canadian investors and meet the growing demand for sustainable strategies,” said Steven Leong, Head of iShares Product, BlackRock Canada.

“With both low interest rates and sustainability top of mind among investors and advisors, these new ETFs provide additional tools to construct sustainable portfolios, offering exposure to ESG-oriented portfolios of Canadian corporate bonds,” he added.

iShares, powered by portfolio and risk management of BlackRock, had $3.03 trillion in assets under management as of June 3, 2021.

RBC iShares ETFs are comprised of RBC ETFs managed by RBC Global Asset Management Inc. and iShares ETFs managed by BlackRock Asset Management Canada Limited.

Related Story:   BlackRock’s New ESG ETF Rakes In A Record $1.25B On Launch                                              

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