Amundi has launched a new fixed income ETF providing socially responsible exposure to a portfolio of ultra-short corporate bonds denominated in euros.

Fannie Wurtz, Head of Amundi ETF, Indexing and Smart Beta.

The Amundi Euro Corp 0-1Y ESG UCITS ETF (ECR1 GY) has listed on Deutsche Börse Xetra and comes with an expense ratio of 0.08%.

The fund tracks the iBoxx MSCI ESG EUR Corporates 0-1 TCA Index which consists of investment-grade, euro-denominated corporate bonds with remaining maturities between one month and one year.

Issuers involved in controversial activities including adult entertainment, alcohol, gambling, tobacco, nuclear power, GMOs, weapons, oil sands, and thermal coal, as well as those embroiled in severe ESG-related controversies, are removed from the selection pool.

The remaining issuers are then assigned an overall company ESG rating based on research from MSCI’s ESG research division. The rating – one of seven grades from ‘AAA’ to ‘CCC’ – indicates how well each firm manages key ESG issues relative to industry peers. Issuers must have a rating of at least ‘BBB’ (average) to be eligible for inclusion.

Amundi offers a further four socially responsible fixed income ETFs which collectively house over €3.5 billion in assets. The funds provide exposure to euro aggregate, US corporate, and euro corporate (broad maturity or maturities under three years) bond segments.

All of Amundi’s socially responsible fixed income ETFs are classified under Article 8 of the European Union’s Sustainable Finance Disclosure Regulation (SFDR).

Fannie Wurtz, Head of Amundi ETF, Indexing and Smart Beta, said: “We fundamentally believe that ETFs play an important role in democratizing ESG. With this addition to our range, we are empowering all investors to cost-effectively integrate ESG in this core fixed income exposure.”