New Listing

Deka unveils euro corporate bond climate ETF

Tracks the MSCI EUR Corporates IG Climate Change ESG Select index

Jamie Gordon

a man in a suit

Deka has expanded its climate range with the launch of a euro-denominated corporate bond ETF.

The Deka MSCI EUR Corporates Climate Change ESG UCITS ETF (D6RA) is listed on the Deutsche Boerse with a total expense ratio (TER) of 0.18%.

D6RA tracks the MSCI EUR Corporates IG Climate Change ESG Select index which offers exposure to 120 bonds from 81 investment-grade issuers in Europe.

The index takes its parent benchmark, the MSCI EUR IG Corporate Bond index, and then applies exclusions based on the United Nations Global Compact, liquidity screens and then ranks securities based on the MSCI Low Carbon Transition (LCT) scores.

Only companies based in developed countries are eligible for inclusion while firms in sectors with potentially strong negative environmental, social and governance (ESG) impacts are excluded.

Furthermore, each issuer is limited to a weighting cap of 4%. in the ETF’s basket.

Georg Kayser (pictured), head of institutional sales at Deka, said: “With D6RA, investors can focus on fixed-income corporate bonds issued in euros with an investment-grade rating.

“These must have a residual term of at least one year and a minimum outstanding volume of €500m.”

Last year, Deka launched a range of five climate ESG ETFs. They include:

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