Bringing you live news and features since 2006 

Vanguard launches ESG US Corporate Bond ETF

RELATED TOPICS​

Vanguard has launched its first fixed income environmental, social, and governance (ESG) ETF for US investors – the Vanguard ESG US Corporate Bond ETF (VCEB). 

The fund provides investors access to the US corporate bond market and expands Vanguard’s current index-and-actively-managed ESG offerings. Vanguard ESG US Corporate Bond ETF seeks to track the performance of Bloomberg Barclays MSCI US Corporate SRI Select Index and is listed on the Chicago Board Options Exchange (Cboe) with a low expense ratio of 0.12 per cent.

“Investors are increasingly seeking opportunities to better align their investment objectives with their personal values,” says Kaitlyn Caughlin, head of Vanguard’s Portfolio Review Department. “Vanguard’s new ESG US Corporate Bond ETF better enables them to do exactly that. The ETF will provide our clients an efficient means of accessing the credit markets while employing a meticulous exclusionary screening process developed by MSCI and implemented by Bloomberg.”

Vanguard has offered ESG funds to US investors for more than two decades, beginning with Vanguard FTSE Social Index Fund (VFTAX) in 2000. In recent years, Vanguard has broadened its equity ESG lineup with the addition of two ETFs, Vanguard ESG US Stock ETF (ESGV) and Vanguard ESG International Stock ETF (VSGX), and an actively-managed offering, Vanguard Global ESG Select Stock Fund (VESGX). Vanguard ESG US Corporate Bond ETF marks Vanguard’s initial entrance into the ESG fixed income market, an area that is growing in investor demand. US investor assets in ESG fixed income mutual funds and ETFs doubled in 2019 to USD850 million, and today, stands at USD1.8 billion. The new ETF will further complement Vanguard’s ESG suite, offering asset class diversification through US corporate bond market exposure.

Latest News

As the ETF industry reaches a milestone of USD12.71 trillion in global assets, Brown Brothers Harriman writes that its 2024..
Matteo Greco, Research Analyst at Fineqia International writes that bitcoin closed last week at approximately USD66,300, marking a 7.8 per..
HSBC Asset Management’s (HSBC AM) ETF and Indexing business has passed USD100 billion in assets under management (AUM), reflecting its..
Amundi’s ETF Market Flows Analysis for April reveals that investors added EUR54.1 billion to global ETFs in April with equities..

Related Articles

Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Sean O' Hara
Pacer ETFs has announced the launch of three Cash Cows UCITS ETFs. The firm writes that this will give European...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by