BlackRock Lists Three Ultrashort Bond ETFs in Europe
March 18 2020 - 1:57PM
Dow Jones News
By Dieter Holger
BlackRock Inc. said Wednesday that it launched in Europe three
exchange-traded funds that follow environmental, social and
governance criteria and hold ultrashort bonds that typically mature
within one year, at it builds up its sustainability lineup and
policies.
The funds, which are ESG versions of existing European ETFs,
screen out companies in violation of certain environmental and
social values. The screen forbids companies involved in
controversial weapons, nuclear weapons, conventional weapons,
civilian firearms, tobacco, adult entertainment, alcohol, gambling,
nuclear power, genetically modified organisms, oil sands and
thermal coal.
Each fund tracks a version of an index from IHS Markit Ltd.
denominated in either dollars, euros or pounds. Both the iShares
USD Ultrashort Bond ESG UCITS ETF (UEDD), iShares EUR Ultrashort
Bond ESG UCITS ETF (EUED) and iShares GBP Ultrashort Bond ESG UCITS
ETF (UESD) charge a total expense ratio of 0.09% or $9 for every
$10,000 invested a year.
Even amid the current market uncertainty, "the trend towards
sustainability is weathering the turbulence," said Brett Olson,
head of fixed income iShares EMEA at BlackRock. He said sustainable
ETFs have drawn $14.3 billion world-wide since the start of the
year.
BlackRock, the world's largest money manager with around $7.4
trillion under management, has recently stepped up its commitment
to sustainable investing.
It also released on Wednesday a tougher policy on how it will
vote during shareholder meetings, which showed the company would
vote against corporate directors who fail to act on climate change
disclosures and executive compensation. The New York-based money
manager is often among the top shareholders at corporations.
BlackRock has faced criticism for towing the line at shareholder
meetings. In recent years, it has supported corporate directors
around 97% of the time in recent years, according to Proxy
Insight.
Write to Dieter Holger at dieter.holger@wsj.com;
@dieterholger
(END) Dow Jones Newswires
March 18, 2020 13:42 ET (17:42 GMT)
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