Investment manager Invesco has introduced the Global Corporate Bond ESG UCITS ETF to increase exposure to investment-grade issuers demonstrating a robust ESG profile. The exchange-traded fund (ETF) will target the securities of corporate issuers across developed markets, with weightings adjusted in accordance with ESG-focused metrics. Issuers will be removed from the index if they have an MSCI ESG rating below ‘BBB’ – which designates companies with moderate management measures relative to their aggregate ESG risks and opportunities in comparison to industry peers – or have faced ESG-related controversies within the past three years. The fund will track the Bloomberg MSCI Global Liquid Corporate ESG Weighted Socially Responsible Investment (SRI) Sustainable Bond Index. “Investors have been using ETFs to gain exposure to fixed income markets increasingly over the past five years,” said Gary Buxton, Head of EMEA ETFs and Indexed Strategies at Invesco. “One of the main drivers of this acceleration in demand has been the launch of fixed income ETFs targeting specific ESG-related objectives, particularly those aiming to provide an uplift in ESG characteristics while maintaining a similar risk and return profile to a non-ESG benchmark.”
