BlackRock Launches New iShares ETF
The iShares Global Aggregate Bond ESG AUD Hedged ETF (AESG) is the latest addition to the global fund manager's Australian fixed income ETF lineup.
The AESG ETF, priced at 19 basis points, provides Australian investors with access to a globally diverse basket of over 21,000 fixed income securities, including government, government-related, corporate, securitised, and green bonds.
It tracks the Bloomberg MSCI Global Aggregate Sustainable and Green Bond SRI AUD Hedged Index and offers a better sustainability profile while matching the Bloomberg Global Aggregate Index's currency, sector, and maturity composition.
Exclusions are also applied to some sovereign and government-related bonds based on the UN sanctions list.
BlackRock Australasia head of wealth Chantal Giles said:
"Clients are looking to embed ESG considerations into their fixed income sleeve in the same way they approach their equity exposures, and they are increasingly transitioning to index fixed income allocations to implement their sustainability preferences.
"ETFs are efficient tools in that sense as they offer transparency, liquidity, diversification, and ease of access, giving clients the conviction to use those securities.
"We saw an opportunity to add to our fixed income ETF range by bringing an Australian dollar-hedged version of our established iShares Global Aggregate Bond ESG ETF.
"As the ESG alternative option to the Bloomberg Global Aggregate Index, AESG offers a diversified global fixed income investment grade-rated portfolio building block with improved sustainable characteristics."
BlackRock Australasia head of iShares and index investments Jason Collins said:
"As we enter a more volatile macro regime with inflationary pressures expected to persist, investors are demanding higher returns for their fixed income allocations and are increasingly embedding ESG considerations to ensure long-term resilience in their portfolios.
"By having the broadest range of fixed income ETFs listed on the ASX, clients have more options in how they decide to allocate fixed income exposures to put more precision into their portfolio."
Source: Financial Standard