Invesco adds corporate bond ESG ETF

Invesco is to launch their Global Corporate Bond ESG ETF.

The new fund will invest in corporate bonds across developed markets and track the Bloomberg MSCI Global Liquid Corporate ESG Weighted SRI Sustainable Bond Index. Constituents will be removed from the index if they have an MSCI ESG rating below BBB or have faced severe controversies relating to ESG issues over the past three years.

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.”