- New product offers global corporate fixed income exposure while incorporating robust screening based on ESG criteria.
- Vanguard’s ESG product range enables investors to build a diversified ESG-aware portfolio.
Vanguard has launched its new Vanguard ESG Global Corporate Bond UCITS ETF. The new ETF is designed to serve as a core building block for ESG-aware portfolios, providing broad diversification while incorporating robust screening based on ESG criteria.
The Vanguard ESG Global Corporate Bond UCITS ETF seeks to track the Bloomberg Barclays MSCI Global Corporate Float-Adjusted Liquid Bond Screened Index and provides exposure to global corporate fixed income, with an ongoing charges figure (“OCF”) of 0.15%. The index applies criteria to exclude companies involving weapons, non-renewable energy, vice products and companies involved with controversies related to the UN Global Compact Principles.[1
Fong Yee Chan, head of ESG strategy, UK and Europe, said, “Vanguard continues to seek ways to deliver long-term ESG strategies to give value to investors. For those investors wishing to mitigate ESG risk or avoid companies that don’t align with their values, we are pleased to offer access to an ESG global corporate bond strategy through the new Vanguard ESG Global Corporate Bond UCITS ETF.”
The Vanguard ESG Global Corporate Bond UCITS ETF will be managed by Vanguard’s Fixed Income Group (FIG). FIG manages more than $1.7trillion in assets across the globe, and draws on the diverse perspectives and knowledge of 57 team members to deliver accurate benchmark tracking, prudent risk management, and highly competitive investment performance.[2]
With the addition of the new product, Vanguard’s line-up for environmentally and socially aware investors consists of the following:[3]
| Fund Name | Domicile | Benchmark | OCF[4] |
| Vanguard ESG Developed World All Cap Equity Index Fund (UK) | U.K. | FTSE Developed All Cap Choice Index | 0.20% |
| Vanguard ESG Developed World All Cap Equity Index Fund | Ireland | FTSE Developed All Cap Choice Index | 0.20% |
| Vanguard ESG Emerging Markets All Cap Equity Index Fund | Ireland | FTSE Emerging All Cap Choice Index | 0.25% |
| Vanguard ESG Global All Cap UCITS ETF | Ireland | FTSE Global All Cap Choice Index | 0.24% |
| Vanguard SRI European Stock Fund | Ireland | FTSE Developed Europe Index | 0.14% |
| Vanguard ESG Global Corporate Bond UCITS ETF | Ireland | Bloomberg Barclays MSCI Global Corporate Float-Adjusted Liquid Bond Screened Index | 0.15% |
[1] https://www.unglobalcompact.org/what-is-gc/mission/principles
[2] Source: Vanguard, as at 30 March 2021
[3] Source: Vanguard, as at 20 May 2021
[4] Source: Vanguard, as at 25 March 2021
