Invesco has launched a new exchange traded fund focussed on ESG investments.
The passively managed Corporate Bond ESG UCITS ETF is expected to use the same investment methodology as its existing EUR, GBP and USD IG Corporate Bond ESG ETFs but on a multi-currency basis.
Gary Buxton, head of EMEA ETFs and indexed strategies at Invesco, said: “Investors have been using ETFs to gain exposure to fixed income markets increasingly over the past five years.
"One of the main drivers of this acceleration in demand has been the launch of fixed income ETFs targeting specific ESG-related objectives, particularly those aiming to provide an uplift in ESG characteristics while maintaining a similar risk and return profile to a non-ESG benchmark."
It will aim to track the Bloomberg MSCI Global Liquid Corporate ESG Weighted SRI Sustainable Bond Index.
The ESG-related objective is set to be achieved through a combination of exclusions and tilting.
Bond issuers would be removed from the index if they face controversy relating to ESG issues or are involved in certain business activities.
Paul Syms, head of EMEA fixed Income at Invesco, said: "It may be attractive for ESG-minded investors looking to take advantage of today’s high bond yields and potential for a favourable rate environment going forward, without taking on individual currency risk or deviating too much from the characteristics of the standard benchmark."
tara.o'connor@ft.com
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