Vanguard is planning to launch its first ESG – environmental, social, and governance – fixed income product for U.S. investors by September, writes Jeff Blumenthal for the Philadelphia Business Journal.
The investment giant’s fixed income group will serve as fund advisor on the new Vanguard ESG U.S. Corporate Bond ETF. The fund is aimed toward socially conscious investors who use ESG criteria to screen potential investments.
“Vanguard’s new U.S. ESG bond fund illustrates our commitment to providing investors with quality investment products and the ability to construct a portfolio that reflects their values,” said Kaitlyn Caughlin, head of Vanguard’s Portfolio Review Department.
She said that those who decide to invest in this fund will “benefit from our leading fixed income indexing capabilities, a low expense ratio, and robust screening process, all in an accessible and diversified manner.”
The new fund will have an estimated expense ratio of 0.12 percent and will aim to track the Bloomberg Barclays MSCI US Corporate SRI Select Index.
The fund will complement the investment manager’s existing $10.6 billion U.S. equity ESG product suite and provide a diverse fixed income option for investors.
Read more about Vanguard in the Philadelphia Business Journal here.
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