Bringing you live news and features since 2006 

L&G launches corporate bonds ETFs with sustainability filter on Xetra


Legal & General Investment Management has launched two new corporate bond ETFs which employ a sustainability filter on Xetra and Börse Frankfurt.

The L&G ESG USD Corporate Bond UCITS ETF enables investors to invest in US dollar-denominated corporate bonds from industrial nations worldwide. In addition to an investment grade rating, fixed and floating coupon bonds are included. For inclusion in the JP Morgan Global Credit Index (GCI) ESG Investment Grade USD Custom Maturity Index, bonds must have a minimum outstanding volume of USD500 million and a minimum remaining maturity of six months.

With the L&G ESG Emerging Markets Corporate Bond (USD) UCITS ETF, investors focus on the performance of US dollar-denominated corporate bonds from emerging markets with both fixed and floating interest rates. Only bonds with a minimum outstanding volume of 500 million US dollars and a minimum residual term of six months are considered. However, the JP Morgan ESG CEMBI Broad Diversified Custom Maturity Index limits the remaining maturity to a maximum of five years for inclusion in the index.

In addition, bond issuers are screened for environmental, social and corporate governance sustainability. Bonds from issuers with a higher ESG rating, so-called green bonds, are weighted more heavily and those with a lower ESG rating are underweighted or excluded. Companies with earnings from the coal, tobacco and weapons industries and those that are not in line with the principles of the United Nations Global Compact are not taken into account.

Latest News

Just the two European launches this week with Fidelity bringing us a global government bond climate aware UCITS ETF and..
Ten new ETF solutions were launched for the week, each with a distinct value proposition for investors.  Detailed below are..
U.S. Bank has announced the launch of their new ETF services in Europe, as well as their first client for..
ETF data providers ETFGI has reported that the ETFs industry in the United States gathered net inflows of USD8.17 billion..

Related Articles

ETF Awards
We are very pleased to bring you the winners in the 13th outing of the ETF Express European ETF Awards,...
Off the Record Episode 1
ETF Express is pleased to announce the launch of Off the Record, a new podcast series, in partnership with Truss...
February ETF flow figures from iShares at BlackRock reveal that inflows into global ETPs were moderate for a fifth consecutive...
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