Proactively designed index strategies with ESG integration as standard
We believe our fixed income ETF range is responsibly built and responsibly managed to tackle the future challenges facing this asset class, from climate change to bond liquidity – precisely what investors should expect.
Our fixed income ETF range is purpose built to give investors core fixed income exposure with ESG integration as standard, through tilting to issuers with stronger ESG profiles, allocating to green bonds, and excluding controversial sectors and UNGC violators.
Our range benefits from an index approach that is optimised for liquidity and benefits from the expertise of our index portfolio managers and our fixed income dealing team.
We have developed techniques to deliver more value when investing in bonds, such as avoiding crowded trades around rating actions and immediately reinvesting coupons; for the benefit of our investors, we are transparently incorporating these into the investment strategy of these ETFs.
At L&G ETF, we offer solutions that seek to capture the opportunities, and mitigate the risks, of the rapidly shifting investment environment.
The index methodology for these ETFs both removes issuers with the weakest ESG profiles (by excluding sectors such as controversial weapons manufacturers, pure coal miners, and tobacco companies as well as the individual issuers with the lowest ESG scores) and invests more in bonds with the highest ESG scores, while retaining a similar risk/return profile to traditional indices.
Fixed income ETFs - fact versus fiction
In this special podcast, we look at the reality around some myths that have emerged about investing in bonds through ETFs.
The value of any investment and any income taken from it is not guaranteed and can go down as well as up, and investors may get back less than the amount originally invested.