Alternative Investments/ESG: Vanguard Launches ESG Corporate Bonds ETF
This is the first fixed-income ETF in Vanguard’s ESG range.
Vanguard’s Fixed Income Group, which manages more than $1.7 trillion in assets under management (AUM) across the globe, now has an ESG corporate bond ETF under its wings. The Vanguard ESG Global Corporate Bond UCITS ETF (V3GD) is launched on the London Stock Exchange and Deutsche Boerse with an ongoing charges figure (OCF) of 0.15%. (International Investment)
This is the second ESG ETF launched in Europe by the firm.
In March, the giant US fund manager introduced a global equity ESG ETF, the Vanguard ESG Global All Cap UCITS ETF (V3AA).
Vanguard ESG Global Corporate Bond UCITS ETF (V3GD)
The Ireland-domiciled ETF is designed as a “core building block for ESG-aware portfolios” and will track the Bloomberg Barclays MSCI Global Corporate Float-Adjusted Liquid Bond Screened index.
However, the ETF will exclude companies involved in weapons, non-renewable energy, vice products, and companies involved with controversies related to the UN Global Compact Principles.
Global corporate bond strategy with ESG
Head of ESG strategy, UK and Europe, Fong Yee Chan said: “Vanguard continues to seek ways to deliver long-term ESG strategies to give value to investors.”
“For those investors wishing to mitigate ESG risk or avoid companies that don’t align with their values, we are pleased to offer access to an ESG global corporate bond strategy through the new Vanguard ESG Global Corporate Bond UCITS ETF.”
The ETF is available in either accumulating or distributing formats.
Related Story: New ETF From Credit Suisse For ESG Exposure To German Stocks
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