New Listing

Vanguard launches two corporate bond ESG ETFs

Euro and US dollar-denominated exposures

Tom Eckett

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Vanguard has expanded its ESG range with the launch of two corporate bond ETFs.

The Vanguard ESG EUR Corporate Bond UCITS ETF and the Vanguard ESG USD Corporate Bond UCITS ETF are listed on the London Stock Exchange, Deutsche Boerse, Borsa Italiana, SIX Swiss and Euronext Amsterdam with ongoing charges figures (OCFs) of 0.11% for unhedged share classes and 0.16% for hedged share classes.

Tracking the respective Bloomberg MSCI Corporate Float-Adjusted Liquid Bond Screened index, the two ETFs offer exposure to euro and US dollar-denominated bonds that score highly from an ESG perspective.

The ETFs also exclude certain issuers that are involved in areas such as non-renewable energy including nuclear power and fossil fuels, vice products including adult entertainment, gambling, alcohol and tobacco products and controversial weapons.

Furthermore, any issuer that does not meet the standards of the United Nations Global Compact Principles is also excluded.

Fong Yee Chan, head of ESG strategy, UK and Europe, at Vanguard, said: “We take a straightforward approach to ESG that enables investors to create portfolios that incorporate their ESG preferences and gives them the best chance for investment success.

“Today’s launches provide additional building blocks for investors seeking to construct broadly diversified, balanced portfolios, at a low cost, in a way that aligns with their preferences.”

Vanguard has launched a number of ESG ETFs this year including two emerging market and Asia-Pacific strategies, the Vanguard ESG Emerging Market All Cap UCITS ETF (V3MM) and the Vanguard ESG Developed Asia Pacific All Cap UCITS ETF (V3PA), in October.

In August, the firm unveiled two equity ESG ETFs, the Vanguard ESG Developed Europe All Cap UCITS ETF (V3EA) and the Vanguard ESG North America All Cap UCITS ETF (V3NA).

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