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In a move towards sustainable investing, Blackrock has introduced the iShares Global Aggregate Bond ESG UCITS ETF. This new ETF is an ESG-compliant version of the popular iShares Core Global Aggregate Bond UCITS ETF.
The iShares Global Aggregate Bond ESG UCITS ETF, with dollar-denominated code IE000U6US1Q0 and euro-hedged code IE000APK27S2, uses a best-in-class approach to select bonds with relatively good Environmental, Social, and Governance (ESG) values from the parent index.
The ETF contains bonds from over 70 countries and more than 30 currencies, offering a diverse portfolio. The bond index used is the Bloomberg MSCI Global Aggregate Sustainable and Green Bond SRI.
To ensure the ETF meets the desired ESG standards, approximately 20,000 bonds out of the original 27,000 have been excluded. Bonds with an MSCI ESG rating below BBB or violations of the United Nations sanctions list are not included in the ETF.
The administrator of the ETF is Blackrock, and it falls under Article 8, SFDR, which means it promotes sustainable investing and considers ESG issues in its investment decision-making process.
This new ETF is intended to provide exposure to a diversified portfolio of sustainable and green bonds, offering investors an opportunity to support companies that prioritize ESG values while still seeking a return on their investments.
