BetaShares has launched its new exchange traded fund (ETF), which will expand its ethical range, and offer investors access to a diversified portfolio of high-quality global and Australian bonds that meet responsible investment criteria.
The new fund, the BetaShares Sustainability Leaders Diversified Bond ETF – Currency Hedged (GBND), would be the first ETF on the Australian Securities Exchange (ASX) which specifically targeted a proportion of ‘green bonds’.
According to the company, GBND would be well suited for advisers and investors who were seeking the benefits of fixed income but also wished to focus on sustainability.
The fund would follow the index that tracked utilities strict environmental, social and governance (ESG) screening processes to select eligible bonds such as those with material exposure to the fossil fuel industry or engaged in activities that carried significant ESG risks.
“With interpretations of responsible investing varying widely, we’re finding investors want to know that their money is being invested in a way that aligns with their values, rather than ethical in name alone”, Alex Vynokur, BetaShares’ chief executive, said.
“The statistics make it clear that global and Australian investors alike are increasingly using ethical investment options as they realise the impact their money can have on promoting positive environmental and social outcomes.”
GBND would join BetaShares’ range of ethical ETFs, which currently provided investors access to a portfolio of global shares (ETHI) and Australian Shares (FAIR) using similar rigorous eligibility screening, the firm said.