iShares EUR Aggregate Bond ESG

ETF description

This ETF provides exposure to a broad range of bonds issued within the Eurozone, including government, corporate, and other types of debt. The fund aims to track the performance of an index that represents the overall euro‑denominated bond market, covering a variety of sectors and issuers. Bonds included in this ETF have investment‑grade credit ratings, indicating a lower level of risk compared to higher‑yield bonds.

This ETF may appeal to investors seeking diversified exposure to the Eurozone bond market in a single investment. By including a mix of government and corporate bonds, it offers a balance between safety and the potential for slightly higher returns.

Issuer details

iShares ETFs are issued and managed by BlackRock, the world’s largest asset management company.

With 800+ products globally and over $2trn in assets (as at June 2024), iShares ETFs are a flexible, low‑cost way for investors to gain exposure to various market segments, including fixed income, emerging markets and broad‑based indexes.

Index details

The Bloomberg MSCI Euro Aggregate Sustainable and Green Bond SRI Index is a subset of the Bloomberg Euro Aggregate Index. It is designed to track EUR‑denominated, investment grade, treasury, government‑related, corporate, and securitized, fixed‑rate debt. The index includes issuers with MSCI ESG Ratings of BBB or higher and negatively screens issuers that are involved in business activities that are restricted because they are inconsistent with certain values‑based business involvement criteria. Issuers with a ‘red’ MSCI ESG Controversy Score, and corporate issuers not covered by MSCI ESG Controversies, are excluded. The index is tilted to allocate at least 10% of the market value to securities classified as Green Bonds and allocate the remaining percentage towards non‑Green Bond eligible Euro Aggregate securities.