INVESTMENT

The new ESG Corporate Bond ETF is launched today


ESG investing is a growing category of investment that provides a way for you to invest in funds that take into account specific environmental, social and governance issues.

ESG investing is a growing category of investment that provides a way for you to invest in funds that take into account specific environmental, social and governance issues.

Explore how ESG investments can play a valuable role in your portfolio

Complement your portfolio

“Vanguard has been providing ESG funding for over 20 years. We believe that anyone interested in disclosing personal value through investment decisions is tolerating investment options, ”said Caitlin Coughlin, Head of Vanguard Portfolio Review.

Consider ESG investing if you want to supplement your portfolio with funds that reflect the most important things for you. We currently have 5 ESG funds (4 stocks and 1 bond) for various investment purposes.

Take a closer look at our new ESG Bond ETF

ESG US Corporate Bond ETF is a low cost, widely diversified index fund which:

  • Bloomberg Barclays MSCI seeks to track the U.S. Corporate SRI Select Index, capturing a broad cross section of the U.S. corporate bond market when the activities of companies that do not meet certain ESG criteria (such as companies that do not have gender diversity on board) or certain fossils. Full exclusion details can be found here.
  • According to Lipper of the Thomson Reuters Company, there is a competitive spending ratio of 0.12%, which is significantly lower than the average expenditure ratio of 0.72% ethically themed income funds as of March 31, 2020.
  • As advised by Vanguard Fixed Income Group, one of the world’s largest fixed income managers, with a global wealth of .9 1.921 trillion as of June0, 2020.
  • The Vanguard Fixed Income Group is managed by Joshua C. Barrickman, CFA, head and co-head of the Americas Indexing Fixed Income Group. Josh has been with Vanguard for 22 years.

How our new ESG Bond ETF fits into your portfolio

Before making any investment, it’s best to start with allocating your total assets – that is, how you divide your money into different asset classes: stocks, bonds and cash. ESG US Corporate Bond ETFs complement our ESG stock ETFs and are for customers who want to reflect ESG preferences in the US bond portion of their portfolio.

The new funds invest in U.S. corporate bonds, which are part of the overall fixed income market. Similar to the process of applying ESG-based screening to stock selection in equity funds, U.S. corporate bonds are screened and selected through the same process. You may want to consider adding the ESG US Corporate Bond ETF to the 4 bond ETFs listed below to get exposure to a specific U.S. income market.

Hypothetical illustration of 70% stock / 30% bond portfolio

Note: For global diversification, you may want to consider adding Vanguard Total International Bond ETF (BNDX) to your portfolio. Vanguard Short Term Treasury ETF, Vanguard Intermediate-Term Treasury ETF, Vanguard Long-Term Treasury ETF, Vanguard Mortgage-Backed Securities ETF and Vanguard Total International Bond ETF.

Check out our new ESG US Corporate Bond ETF today!


Comments:

For more information about vanguard funds or vanguard ETFs, visit vanguard.com to get a prospectus or, if available, a summary prospectus. The prospectus contains investment objectives, risks, charges, expenses and other important information about a fund; Read and consider carefully before investing.

You must buy and sell Vanguard ETF shares through Vanguard Brokerage Services (we are free of those commissions) or through other brokers (which may charge a commission). See Vanguard Brokerage Service Commission and Fee Schedule for complete information. Vanguard ETF shares are not redeemable in any way other than the merger of millions of dollars worth directly with the issuing fund. ETFs are subject to market volatility. When buying or selling an ETF, you will pay or accept the current market price, which may be less than the net asset value.

ESG funds are covered by ESG investment risk, which means that the stocks or bonds displayed by the index sponsor for the ESG criteria will generally show less to the markets or selected special stocks or bonds, as a whole, of other funds verified for the ESG criteria.

All investments are at risk, including the potential loss of money you invest. Diversity does not guarantee gain or protect from loss. Investing in bonds is subject to interest rates, credit and risk of inflation. Investing in stocks or bonds issued by a non-US company is a matter of risk, including country / regional risk and currency risk.





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