BlackRock has announced the launch of three ultra-short bond ETFs, which are the ESG equivalent of existing iShares UCITS ETFs, across dollar, euro and sterling denominated products.
The new fund iShares Ultrashort Bond ESG UCITS ETFs will offer exposure to investment grade, very short duration fixed and floating corporates across industrials, utilities and financial companies.
Its ESG credentials come from an exclusionary investment style with the following issuers all excluded: controversial weapons, nuclear weapons, conventional weapons, civilian firearms, tobacco, adult entertainment, alcohol, gambling, nuclear power, genetically modified organisms, oil sands and thermal coal.
Each fund will track the Markit iBoxx Liquid Investment Grade Ultrashort index in its relevant currency denomination and will offer a total expense ratio of 0.09%.
Brett Olson, head of fixed income iShares EMEA at BlackRock, said: "Investors are turning to iShares ETFs to access markets and make portfolio allocations quickly and cost-effectively amid market uncertainty, and the trend towards sustainability is weathering the turbulence.
"The global sustainable ETF industry has attracted $14.3bn since the start of the year, and we remain committed to providing investors with the choice of investment tools to build resilient portfolios and meet sustainability goals."