Four new ETFs from issuer Xtrackers are now trading on Xetra and Börse Frankfurt. With the Xtrackers Corporate Green Bond UCITS ETFs, investors participate in the performance of green bonds denominated in US dollars or euros issued by companies or public authorities with an investment grade rating.
Green bonds are debt instruments issued to finance projects with direct environmental benefits. These include climate and environmental projects such as alternative energies, environmentally friendly buildings, sustainable water management or those that contribute to the reduction of greenhouse gases. Companies with business activities in the areas of tobacco, weapons, power plant coal or oil sands are excluded from the index.
For bonds denominated in US dollars, investors can also choose a share class with currency hedging against the euro.
The Xtrackers MSCI Europe Consumer Discretionary ESG Screened UCITS ETF 1C is designed to provide investors with access to large and mid-cap companies in the consumer discretionary sector from 15 developed countries. Cyclical consumer goods include goods and services that can be dispensed with in difficult economic times, such as cars, clothing, leisure goods or household durables.
Companies with business activities in the fields of weapons, tobacco, oil sands or coal from power plants as well as companies that violate the United Nations Global Compact are excluded from the index.
The ongoing charges for the green bond ETFs are 0.25 per cent, while the Consumer Discretionary product comes in at 0.30 per cent.