Industry Updates

Lyxor launches corporate green bond ETF

PLAN tracks the Solactive EUR USD IG Corporate Green Bond TR index

Tom Eckett

a man in a suit

Lyxor has expanded its fixed income ESG ETF range with the launch of a corporate green bond strategy, ETF Stream can reveal.

The Lyxor Corporate Green Bond UCITS ETF (PLAN) is listed on the London Stock Exchange, Deutsche Boerse, Borsa Italiana and Euronext Paris with a total expense ratio (TER) of 0.20%.

PLAN tracks the Solactive EUR USD IG Corporate Green Bond TR index which offers exposure to 276 investment grade green bonds.

To be eligible for inclusion in the index, a security must be considered a ‘green bond’ by the Climate Bonds Initiative while meeting specific criteria including an issue size of at least $300m, at least one year until maturity and be denominated in euros or US dollars.

An ESG screen is also applied to the index to exclude any issuers with exposure to controversial businesses or who are subject to United Nations sanctions.

Philippe Baché (pictured), head of fixed income ETF product at Lyxor, commented: “With the launch of PLAN, Lyxor provides a simple way for investors to take climate action and transition their bond portfolios towards a more sustainable economy.”

PLAN is the second corporate green bond ETF to launch in Europe. In July, DWS launched two investment grade green bond ETFs, the Xtrackers EUR Corporate Green Bond UCITS ETF (XGBE) and Xtrackers USD Corporate Green Bond UCITS ETF (XGBU), which were seeded by Quintet.

Green bonds growing in Europe

Lyxor has undercut its German rival by five basis points with XGBE and XGBU carrying fees of 0.25%.

The French asset manager has the most extensive range of green bond ETFs in Europe having launched Europe’s first green bond ETF in February 2017 and the first government green bond ETF in July.

The range includes:

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