Sage Advisory has launched the Sage ESG Intermediate Credit ETF (GUDB) on the Cboe ETF Marketplace.
GUDB seeks to replicate investment results that generally correspond, before fees and expenses, to the performance of the Sage ESG Intermediate Credit Index, as launched in August 2017. The ETF generally will invest at least 80 per cent of its total assets in the component securities of the Sage ESG Intermediate Credit Index (the Index).
The Index consists of corporate bonds selected by Sage from the Barclays Capital US Intermediate Credit Bond Index that meet Sage’s Environmental, Social and Governance (ESG) criteria. The Index uses Sage’s ESG factor analysis framework and rules-based selection process. The Index is designed to maximise exposure to positive ESG characteristics, while maintaining a high level of liquidity. More information is available here.
Laura Morrison, Senior Vice President, Global Head of Exchange-Traded Products at Cboe, says: “Sage’s fixed income and equity ESG investment solutions are a testament to their commitment to sustainability and responsible investing. One of the Cboe’s guiding principles is good citizenship, and so it’s been a particular pleasure working with the Sage team to bring this product, which blends ESG issues with broad diversification and solid risk management, to market.”
“Investors are realising that ESG strategies do not require a sacrifice in returns. Combining this mindset with the rapidly growing popularity of ETFs makes the timing perfect,” says Robert G Smith, President and CIO at Sage Advisory. “We’re thrilled to be launching GUDB on one of the world’s largest exchanges, where we believe the strategy will have the greatest potential positive impacts on intended ESG criteria.”