Amundi has expanded its suite of socially responsible fixed income ESG ETFs with the addition of a multi-currency global aggregate bond fund targeting securities at the near end of the yield curve.
The Amundi Global AGG SRI 1-5 UCITS ETF has been listed on Deutsche Börse Xetra in euros and US dollars.
The fund is linked to the Bloomberg MSCI Global Aggregate 500MM ex Securitized 1-5 Year Sustainable SRI Sector Neutral Index which consists of fixed-rate, investment-grade bonds from Treasury, government-related, and corporate issuers worldwide.
The index includes bonds denominated in a broad range of currencies as long as they satisfy minimum par amount outstanding thresholds and have a remaining time until maturity between one and five years.
The methodology screens out issuers embroiled in severe ESG-related controversies as well as those with notable business operations linked to adult entertainment, alcohol, gambling, tobacco, weapons, nuclear power, thermal coal, fossil fuels, and genetically modified organisms.
See related article: Amundi US Flagship Equity Strategy With An ESG Focus Added to UBS Separately Managed Account Platforms
The remaining issuers are assigned ESG scores based on an analysis conducted by MSCI ESG Research. Issuers must have a rating of BBB (average) or higher to remain in the index.
Constituents are weighted by market value outstanding while setting the weights of the Treasury, government-related, and corporate sectors to match those of the original universe.
The ETF comes with an expense ratio of 0.14%.
The fund complements the Amundi Global AGG SRI UCITS ETF which launched on Deutsche Börse Xetra in euros (8OUU GY) and US dollars (8OUV GY) in April of this year. This fund, which also comes with an expense ratio of 0.14%, utilizes the same investment approach but applies it to a broader universe of securities from across the yield curve.
Source: ETF Strategy