The burgeoning environmental, social and governance (ESG) ETF sector has seen a further branching out with the launch of a new fund aimed at giving access to a diversified US-denominated corporate bonds.

The Amundi Index US Corp SRI - UCITS ETF will exclude issuers involved in sectors such as alcohol, tobacco, military weapons, gambling, adult entertainment, genetically modified foods and nuclear power.

Amundi said the fund, which is priced a sixteen basis points, leverages MSCI's ESG expertise and follows the Bloomberg Barclays MSCI Corporate SRI index. It said the ETF was a direct response to the growing demand for ESG criteria integration from investors who, along with being more ethically conscious, understand that ESG factors could potentially impact a company's financial performance.

Fannie Wurtz, managing director at Amundi ETF, indexing and smart beta, said the new fund launch underlines the company's commitment to deliver passive solutions for clients that are in-line with their social responsibility goals.

"As the first asset manager to sign the UN Principles for Responsible Investment (PRI), we believe the potential of socially responsible investments will continue to grow in the future, and we are committed to offering the relevant bond and equity tools adapted to these new requirements," she added.