New bond ETF from iShares on Xetra: investing in environmental projects with Green Bonds
New bond ETF from iShares on Xetra: investing in environmental projects with Green Bonds
A new exchange-traded fund issued by iShares has been tradable on Xetra and via Börse Frankfurt since Friday.
The iShares € Green Bond UCITS ETF EUR (Acc) offers investors access to green fixed-income corporate and government bonds denominated in euros. In addition to an investment grade rating, the bonds must have a minimum outstanding volume of €300 million.
Green bonds are debt instruments with a sustainable positive impact on the environment. They are issued to use their proceeds to finance climate and environmental projects to reduce greenhouse gases and promote a more climate-friendly economy. These include alternative and renewable energy, sustainable forestry and agriculture, sustainable water management, the promotion of environmentally conscious transport and infrastructure, and the reduction of waste and pollution.
Bonds from issuers that are classified as unsustainable according to ESG criteria or exceed certain caps on controversial activities are excluded from the fund.
Name | Asset class | ISIN | Ongoing charges | Distribution policy | Reference index |
Shares € Green Bond UCITS ETF EUR (Acc) | Fixed Income ETF | 0.20 per cent | accumulating | Bloomberg Barclays MSCI Euro Green Bond SRI including Nuclear Power Index |
The product offering in Deutsche Börse's XTF segment currently comprises a total of 1,904 ETFs and 383 ETPs. With this selection and an average monthly trading volume of around €19 billion, Xetra is the leading trading venue for ETFs in Europe.