Vanguard has launched two new exchange traded funds focused on green corporate bonds with currency hedging on Xetra and Börse Frankfurt.
The Vanguard ESG Global Corporate Bond UCITS ETF EUR Hedged – which is available either in accumulating or distributing format – offers investors access to fixed-income bonds issued by companies that excel in the environmental, social, and corporate governance areas and boast an investment grade rating.
The index includes debt instruments of industrial, utility, and financial companies from developed and emerging markets with a residual term of at least one year.
Companies with significant business activities in the areas of adult entertainment, alcohol, tobacco, weapons, genetically modified organisms, nuclear power, thermal coal, or oil and gas are excluded from the Index.
Investors can choose between an accumulating and a distributing share class. In addition, currency risks to the euro are minimised.