Lyxor has expanded its environmental, social and governance (ESG) ETF range with the launch of a green bond product,
The Lyxor Green Bond ESG Screened UCITS ETF (XCO2) is listed on Deutsche Borse with a total expense ratio (TER) of 0.25%.
XCO2 is physically replicated and tracks the Solactive Green ESG Bond EUR USD IG TR.index.
To be included in the index, the green bonds must meet the standards set by the Climate Bonds Initiative (CBI) in terms of how the proceeds are used for climate-friendly green projects only.
Along with the CBI standards, XCO2 includes an ESG screen using data from Sustainalytics, which adds exclusions to meet specific ESG requirements.
The new listing comes two years after Lyxor launched the Lyxor Green Bond UCITS ETF (CLIM) in September 2017, which has €132m assets under management (AUM).