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Vanguard has launched two new socially responsible fixed income ETFs in Europe covering corporate bonds denominated in USD or EUR.
Vanguard currently offers three ESG-focused corporate bond ETFs in Europe.
of Vanguard ESG USD Corporate UCITS ETF When Vanguard ESG Euro Corporate UCITS ETF deployed across the continent with a list of London Stock Exchange, German Stock Exchange Xetra, Borsa Italiana, SIX Swiss ExchangeWhen Euronext Amsterdam.
The fund is designed to serve as the core building block of a socially responsible portfolio, offering broad diversification while incorporating rigorous screening based on environmental, social and governance (ESG) criteria.
ETFs are available in both stock class accumulation and distribution and currency hedging.
The expense ratio for each fund is 0.11% for unhedged share classes and 0.16% for currency hedged share classes.
methodology
ETFs are Bloomberg MSCI USD Corporate Float-Adjusted Liquid Bond Screening Index When Bloomberg MSCI EUR Corporate Float Adjusted Liquid Bond Screened Index.
The index is constructed from a parent universe consisting of investment grade fixed income corporate bonds from issuers in both developed and emerging markets. A qualifying issue must have at least one year remaining until maturity and an issue size of at least $750 million for the USD index and he at least €500 million for the EUR index.
The ESG screening methodology draws on insights from MSCI ESG research to identify issuers that violate the principles of the United Nations Global Compact, as well as adult entertainment, alcohol, gambling, tobacco, nuclear weapons, controversial weapons, conventional weapons, and civilian firearms. , excludes issuers that generate revenue from nuclear weapons. electricity, genetically modified organisms, or fossil fuels.
The remaining issuers are weighted by market value and the index is rebalanced monthly.
The new list is Vanguard ESG Global Corporate Bond UCITS ETF Introduced by Vanguard in May 2021. The fund applies the same ESG screening approach to a broader initial universe of investment grade corporate bonds denominated in any of several major global currencies. It has an expense ratio of 0.15% and is available in a variety of currency-hedged share classes.
