New bond ETF from L&G on Xetra: access to the fixed income market for sustainable corporate bonds with currency hedging
New bond ETF from L&G on Xetra: access to the fixed income market for sustainable corporate bonds with currency hedging
A new exchange-traded fund from Legal & General Investment Management has been tradable on Xetra and Börse Frankfurt since today.
The L&G ESG USD Corporate Bond UCITS ETF EUR Hedged Acc offers investors access to US dollar-denominated corporate bonds from developed countries worldwide. The bonds have an investment grade rating and a fixed or variable coupon. To be included in the benchmark index, the J.P. Morgan ESG Global Credit (GCI) Investment Grade USD Custom Maturity Index, bonds must have an outstanding amount of at least USD 500 million and a remaining maturity of at least six months.
Bond issuers are also assessed for their sustainability in the areas of environment, social issues and corporate governance. Bonds from issuers with a higher ESG rating, so-called green bonds, are weighted higher, while bonds with a lower ESG rating are underweighted or excluded. Companies that generate income from thermal coal, tobacco and weapons, as well as companies that violate the principles of the United Nations Global Compact, are not included.
This is a currency-hedged share class.
Name | Asset class | ISIN | Ongoing charges | Distribution policy | Reference index |
L&G ESG USD Corporate Bond UCITS ETF – EUR Hedged Acc | Fixed Income ETF | 0.12 per cent | Accumulating | J.P. Morgan ESG Global Credit (GCI) Investment Grade USD Custom Maturity Index |
The product offering in Deutsche Börse's XTF segment currently comprises a total of 2,194 ETFs. With this selection and an average monthly trading volume of around €15 billion, Xetra is the leading trading venue for ETFs in Europe.