Legal & General Investment Management (LGIM) has sought to add liquidity and ESG themes to its latest fixed income ETFs.
The Core Fixed Income ETF range comprises five funds, all of which be listed on the London Stock Exchange.
Two of the funds, L&G ESG Emerging Markets Government Bond UCITS ETF and the L&G ESG China Bond UCITS ETF, will also be listed on the Deutsche Börse and the Borsa Italiana.
The new ETF range also features a higher allocation to green bonds and issuers with higher ESG scores in comparison to traditional fixed income ETFs, the firm stated.
The ETFs also employ what LGIM terms a “liquidity-aware approach” which includes increased minimum issuance thresholds relative to traditional benchmarks to improve the overall liquidity profile.
“Liquidity and ESG integration in bond investing are among the top considerations for fixed income investors,” said Howie Li, head of ETFs at LGIM.
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