New Listing

Deka unveils euro corporate green bond ETF

D6RE carries a fee of 0.25%

Jamie Gordon

ESG finance

Deka has expanded its fixed income range with the launch of an ETF targeting green bonds from European corporate issuers.

The Deka iBoxx MSCI ESG EUR Corporates Green Bond UCITS ETF (D6RE) is listed on the Deutsche Boerse with a total expense ratio (TER) of 0.25%.

D6RE tracks the iBoxx MSCI ESG EUR Corporates Green Bond Select index which captures 90 bonds from 61 investment grade issuers in Europe.

Green bonds are issued by companies that commit to using the proceeds to finance environmental and climate protection initiatives such as constructing renewable energy utilities or conservation. 

The ETF’s benchmark incudes bonds classified by the Climate Bond Initiative Green Bonds Standard and excludes those from issuers that manufacture weapons or violate the UN Global Compact.

Georg Kayser, head of institutional sales at Deka ETF, told ETF Stream: “The ETF offers a diversified investment in corporate bonds with a positive environmental impact for both large and small investment volumes.

“The launch of the ETF is an important step in attracting more investors to help finance the transformation of our economy." 

The news also marks the firm’s latest entrant into sustainable fixed income after it debuted the Deka MSCI EUR Corporates Climate Change ESG UCITS ETF (D6RA) in November 2021.

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