Lyxor Asset Management has announced the launch of the Lyxor Corporate Green Bond (DR) UCITS ETF, allowing investors to contribute in the transition to a low-carbon economy and align their corporate bond portfolio with their net-zero ambitions.
The firm writes that as the number of companies setting net zero targets dramatically increases, corporates seeking to finance transition and operating in businesses which can invest in eligible projects and assets increasingly turn to the green bond market. Corporates take the lion’s share of green bond issuances with close to 60 per cent of new issuances in 2021 year-to-date.
With a Total Expense Ratio of 0.20 per cent, the physically replicated Lyxor Corporate Green Bond (DR) UCITS ETF was listed on Euronext on August 24th and today (September 14th) on Xetra, London Stock Exchange and Borsa Italiana. The ETF tracks the Solactive EUR USD IG Corporate Green Bond TR Index, representative of the performance of Euro and USD denominated Investment Grade corporate green bonds compliant with the Climate Bonds Initiative criteria.
The firm writes that with this launch, Lyxor now offers the widest range of green bond ETFs on the European market, a segment it has consistently pioneered with the launch of the world’s first and now largest green bond ETF in 2017, and the world’s first ETF tracking sovereign Eurozone green bonds in July this year.
Philippe Baché, Head of Fixed Income ETF Product at Lyxor Asset Management, says: “With the launch of this new corporate green bond ETF, Lyxor provides investors with a well-rounded green bond range – aggregate, government and corporate exposures – allowing them to pick and choose a green bond ETF best suited to their investment needs, and providing a simple way to take climate action and transition their bond portfolios towards a more sustainable economy.”
