ETF manager BetaShares has launched an ETF that gives investors access to a diversified portfolio of bonds that meets strict responsible investment criteria.
The Sustainability Leaders Diversified Bond ETF-Currency Hedged (ASX: GBND) excludes bond issuers if they have exposure to the fossil field industry or are engaged in other activities that carry significant ESG risks, including gambling, tobacco, and a lack of gender diversity at the board level.
“Exposure to fixed income offers important portfolio diversification and defensive benefits,” said BetaShares CEO Alex Vynokur.
“The launch of GBND provides a solution for investors and advisers who are seeking the benefits of fixed income but want to do so with a focus on sustainability.”
At least 50 per cent of the portfolio of the ETF will be allocated to “green bonds” – bonds issued to directly fund projects that have positive environmental and climate benefits.
“With interpretations of responsible investing varying widely, we’re finding investors want to know that their money is being invested in a way that aligns with their values, rather than ethical in name alone,” Mr Vynokur said.
“The strict screening process each bond must pass enables GBND to offer ‘true to label’ ethical investment exposure.”
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