BlackRock has launched two ESG high yield bond ETFs, which it claims to be the first such ETFs in Europe, in collaboration with the Dutch insurer ASR.
According to a press statement, the euro-denominated iShares High Yield Corp Bond ESG Ucits ETF (EHYD) and the US dollar denominated iShares High Yield Corp Bond ESG Ucits ETF (DHYD) “aims to enable investors to achieve a more sustainable high yield exposure through debt issued by companies with the strongest commitment to ESG, while also screening out companies involved in controversial business activities”.
The funds will track the Bloomberg Barclays MSCI Euro Corporate High Yield SRI and Sustainable BB+ Bond Index and the Bloomberg Barclays MSCI US Corporate High Yield SRI and Sustainable BB+ Bond Index respectively.
Meaghan Muldoon, head of sustainable investing Emea at BlackRock said: “As evidence increasingly shows that sustainability-related factors can help investors build more resilient portfolios, we are moving into an era where sustainable investing will be the standard way to invest.
“Against a backdrop of a search for yield, and enhanced coverage across the credit and geographic spectrum, more and more investors can now invest in fixed income strategies while meeting their sustainability goals.”
Both ETFs will have a total expense ratio of 0.50%, the same as corresponding euro and dollar iShares high yield ETFs with no ESG screens.
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