iShares adds to fixed income suite with double ESG bond ETF launch
iShares noted that after three months of outflows from high yield ETFs globally, in November investors injected record flows of $11.6bn into them.
The company said the two funds, the iShares € High Yield Corp Bond ESG Paris-Aligned Climate UCITS ETF (HYPE) and iShares $ High Yield Corp Bond ESG Paris-Aligned Climate UCITS ETF (HYDP), will enable broad, representative exposure to high yield bonds.
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HYPE will invest in euro-denominated high yield bonds, targeting a duration of 4.5 years and a yield of 4.22%. It will track the Bloomberg MSCI Euro Corporate High Yield Climate Paris-Aligned ESG Select index.
Meanwhile, HYDP will invest in US dollar-denominated high yield corporate debt, targeting a duration of just over seven years and a yield of 5.4%. Its benchmark will be the Bloomberg MSCI US Corporate High Yield Climate Paris-Aligned ESG Select index.
iShares noted that after three months of outflows from high yield ETFs globally, November saw investors inject record flows of $11.6bn into them.
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As a result, the company said investors should be considering what a long-term portfolio looks like and the role bond ETFs can play within them, in a longer time horizon.
BlackRock added: «As the world shifts to new energy systems, it creates opportunities and risks for our clients. It is our job at BlackRock to seek optimal returns and outcomes for our clients in line with their investment choices, while managing the risks as effectively as possible.»
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