New Listing

BNP Paribas AM expands fixed income ESG ETF range with triple launch

The three launches see BNPP AM's suite of fixed income SRI and ESG ETFs grow to six, with assets of €2.5bn.

Jamie Gordon

a woman smiling for the camera

BNP Paribas Asset Management has expanded its ESG ETF range with the launch of three fixed income strategies.

The BNP Paribas Easy EUR High Yield SRI Fossil Free UCITS ETF (YBNSFFTC), the BNP Paribas Easy JPM ESG EMBI Global Diversified Composite UCITS ETF (JPMGDTC) and the BNP Paribas Easy JPM ESG EMU Government Bond IG 3-5 Year UCITS ETF (BBBTIEA) are listed on Euronext Paris with total expense ratios (TERs) 0f 0.35%, 0.25% and 0.15%, respectively.

YBNSFFTC tracks an index of the top-rated euro high yield corporate issuers scoring highly on socially responsible investing (SRI) criteria. 

JPMGDTC replicates an index of emerging market sovereign and quasi-sovereign bonds issued in USD, that perform well on environment, social and governance considerations. 

Finally, BBBTIEA focuses on an index of euro-denominated Eurozone government bonds with three-to-five-year maturities and scoring well on ESG. 

Each of the ETFs’ indices exclude companies involved in civilian firearms, military weapons, tobacco, fossil fuels, and those that do not comply with the United Nations Global Compact. 

Isabelle Bourcier (pictured), head of quantitative and index management at BNPP AM, said: “These fund launches are part of a dual approach of developing our ESG offering and our fixed income index range.  

“We are maintaining the momentum within our responsible offering, in line with the expectations of our institutional and retail clients.” 

BNPP AM now has a suite of six SRI and ESG fixed income ETFs with assets under management of €2.5bn.

The fixed income ESG ETF space is developing rapidly in Europe. In February, Legal & General Investment Management (LGIM) added a green bond ETF, the L&G ESG Green Bond UCITS ETF (GBND), to its fixed income ESG range.

Meanwhile, Lyxor cut fees on three its fixed income ESG ETFs in January, making them the cheapest on the European market, in a sign of growing competition in the market.

Featured in this article