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BlackRock launches ultra-short bond ESG ETFs

Green_bondsBlackRock has broadened its range of fixed income sustainable exchange-traded funds (ETFs) with a suite of three ultra-short bond environmental, social and governance (ESG) products.

The three new Ucits funds are ESG equivalents of existing iShares Ucits ETFs and provide US dollar, euro and sterling exposure to investment grade, very short duration fixed and floating corporates across industrials, utilities and financial companies.

The ESG criteria excludes issuers involved in controversial weapons, nuclear weapons, conventional weapons, civilian firearms, tobacco, adult entertainment, alcohol, gambling, nuclear power, genetically modified organisms, oil sands and thermal coal.

Brett Olson, head of fixed income iShares Emea at BlackRock says, “Investors are turning to iShares ETFs to access markets and make portfolio allocations quickly and cost-effectively amid market uncertainty, and the trend towards sustainability is weathering the turbulence.

The three funds, which all carry a total expense ratio of 0.09%, are:

  • iShares USD Ultrashort Bond ESG UCITS ETF (UEDD) which tracks the Markit iBoxx ESG USD Liquid Investment Grade Ultrashort index.
  • iShares EUR Ultrashort Bond ESG UCITS ETF (EUED) which tracks the Markit iBoxx ESG EUR Liquid Investment grade Ultrashort index.
  • iShares GBP Ultrashort Bond ESG UCITS ETF (UESD): tracks the Markit iBoxx ESG GBP Liquid Investment Grade Ultrashort index.

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