New L&G ETFs on Xetra: Corporate Bonds with sustainability filter from industrial nations and emerging markets

Release date: 21 Jan 2021 | Deutsche Börse Cash Market

New L&G ETFs on Xetra: Corporate Bonds with sustainability filter from industrial nations and emerging markets

Since Thursday, two new exchange traded funds issued by Legal & General Investment Management are tradable on Xetra and Börse Frankfurt.

The L&G ESG USD Corporate Bond UCITS ETF enables investors to invest in US dollar-denominated corporate bonds from industrial nations worldwide. In addition to an investment grade rating, fixed and floating coupon bonds are included. For inclusion in the J.P. Morgan Global Credit Index (GCI) ESG Investment Grade USD Custom Maturity Index, bonds must have a minimum outstanding volume of 500 million US dollars and a minimum remaining maturity of six months.

With the L&G ESG Emerging Markets Corporate Bond (USD) UCITS ETF, investors focus on the performance of US dollar-denominated corporate bonds from emerging markets with both fixed and floating interest rates. Only bonds with a minimum outstanding volume of 500 million US dollars and a minimum residual term of six months are considered. However, the J.P. Morgan ESG CEMBI Broad Diversified Custom Maturity Index limits the remaining maturity to a maximum of five years for inclusion in the index.

In addition, bond issuers are screened for environmental, social and corporate governance sustainability. Bonds from issuers with a higher ESG rating, so-called green bonds, are weighted more heavily and those with a lower ESG rating are underweighted or excluded. Companies with earnings from the coal, tobacco and weapons industries and those that are not in line with the principles of the United Nations Global Compact are not taken into account.

Name

Asset class

ISIN

Ongoing charges

Distribution policy

Reference index

L&G ESG USD Corporate Bond UCITS ETF

Bond ETF

IE00BLRPRD67

0.09 per cent

Distributing

J.P. Morgan Global Credit Index (GCI) ESG Investment Grade USD Custom Maturity Index

L&G ESG Emerging Markets Corporate Bond (USD) UCITS ETF

Bond ETF

IE00BLRPRF81

0.35 per cent

Distributing

J.P. Morgan ESG CEMBI Broad Diversified Custom Maturity Index

The product offering in Deutsche Börse's XTF segment currently comprises a total of 1,621 ETFs. With this selection and an average monthly trading volume of around €16.5 billion, Xetra is the leading trading venue for ETFs in Europe.

Further information