A new Xtrackers exchange traded fund providing access to ESG-compliant corporate bonds from the financial, utility and industrial sectors is now trading on Xetra and Börse Frankfurt. The Xtrackers ESG USD Corporate Bond UCITS ETF 2C – EUR hedged enables investors to invest in fixed-interest corporate bonds denominated in US dollars worldwide, taking into account sustainability criteria. Only bonds of financial, utility or industrial companies with an investment grade rating, which have a remaining term of at least three years and a minimum outstanding volume of USD750 million are considered.
Each company must have an ESG rating of at least BBB and therefore meet the ESG criteria. Companies with significant business activities in the areas of alcohol, tobacco, gambling, adult entertainment, genetically modified organisms, nuclear power or weapons are excluded from the index.
Currency risks against the euro are minimised.