BNP Paribas AM launches two corporate bond ESG ETFs

BNP Paribas ETF

BNP Paribas Asset Management has expanded its ETF range with the launch of two corporate bond environmental, social and governance (ESG) products.

The BNP Paribas Easy EUR Corp Bond SRI Fossil Free 1-3Y UCITS ETF (SRIC3) and the BNP Paribas Easy EUR Corp Bond SRI Fossil Free 3-5Y UCITS ETF (SRIC5) are listed on Euronext Paris with total expense ratios (TERs) of 0.20%.

Both ETFs are set to list on the Borsa Italiana on 1 December.

Tracking the Bloomberg-Barclays MSCI Euro Corp SRI Sustainable Reduced Fossil Fuel 1-3Y index, SRIC3 offers investors exposure to euro-denominated corporate bonds with 1-3 years maturity.

SRIC5 tracks the Bloomberg-Barclays MSCI Euro Corp SRI Sustainable Reduced Fossil Fuel 3-5Y index, which invests in euro-denominated bonds with 3-5 years maturity.

ETF Insight: Can ESG investors do good and avoid underperforming?

Using MSCI’s best-in-class selection approach, all issuers included in the indices must have an ESG rating above ‘BBB’. The indices also exclude sectors with issuers that have high carbon concentration.

SRIC3 currently has €240m assets under management (AUM) while SRIC5 has gathered €54m.

The two ETFs are an extension of the BNP Paribas Easy € Corp Bond SRI Fossil Free UCITS ETF (ASRI), which launched in February and has gathered €275m since launch.

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