BNP Paribas Asset Management has announced the launch of BNP Paribas Easy Euro Aggregate Bond SRI Fossil Free ETF and BNP Paribas Easy JPM ESG EMU Government Bond IG 1-3Y ETF.
Listed on Euronext Paris, Borsa Italiana and Deutsche Börse Xetra from 8 March, these two launches join BNPP AM’s range of bond index funds, which now includes 17 sustainable ETFs.
The firm writes that BNP Paribas Easy Euro Aggregate Bond SRI Fossil Free ETF aims to replicate the performance of the Bloomberg MSCI Euro Aggregate ex Fossil Fuel SRI Select (NTR) Index and provides investors with exposure to euro-denominated sovereign and corporate investment grade bonds while complying with ESG[2] criteria. The index excludes issuers in sectors with a negative ESG impact (such as fossil fuels), those in violation of the principles of the United Nations Global Compact and those involved in ESG-related controversies.
BNP Paribas Easy JPM ESG EMU Government Bond IG 1-3Y ETF tracks the performance of the JP Morgan ESG EMU Government Bond IG 1-3 Year (TR) Index by investing at least 90 per cent of its assets in debt securities issued by eurozone governments, while complying with ESG criteria. Index constituents are euro-denominated government bonds with maturities between one and three years. The fund complements BNPP AM’s existing offer on the same index for maturities of three – five years and for all maturities.
Both funds are classified as SFDR Article 8. BNPP AM’s sustainable bond index range now includes 17 ETFs covering the entire fixed spectrum, from government bonds to corporate bonds and green bonds.
Lorraine Sereyjol-Garros, Global Head of Development for ETFs & Index Funds at BNPP AM, comments: “Bond ETFs have gained momentum in recent years and their market share by assets under management grew by almost 30 per cent in 2022. Following the launch of our first sustainable bond ETF in 2019, we are further expanding our range of products with these two new funds in order to meet investors’ growing appetite for fixed income exposure using an ESG approach. These launches provide investors with additional asset allocation building blocks that have limited levels of tracking error estimated to be comparable to those of non-ESG benchmarks. Our range also includes Paris-aligned benchmark bond ETFs.”
