ESG: Bonds
The following ETFs (exchange-traded funds) offer a variety of ESG styles and approaches in the bond market. They include US investment grade bonds, high yield bonds, and international bonds.
Note: These are not recommendations, just investment ideas for further research.
US Investment Grade Bonds
| Fund | Ticker | Expense | Holdings | Inception |
|---|---|---|---|---|
| iShares ESG 1-5 Year USD Corporate Bond | SUSB | 0.12% | 841 | 7/11/17 |
| Tracks an index of USD-denominated, investment-grade, short-term corporate debt, selected based on each issuer’s environmental, social, and governance practices. | ||||
| iShares ESG Advanced Total USD Bond Market | EUSB | 0.12% | 518 | 6/23/20 |
| Obtain exposure to a variety of investment grade bonds and some high-yield bonds from issuers with leading environmental, social and governance (ESG) practices. | ||||
| iShares ESG US Aggregate Bond | AGG | 0.10% | 2469 | 10/18/18 |
| Applies an ESG filter to the aggregate bond market. Gain exposure to a spectrum of investment grade bonds from issuers with favorable environmental, social and governance (ESG) practices. | ||||
| iShares ESG USD Corporate Bond | SUSC | 0.18% | 3523 | 7/11/17 |
| Offers exposure to a broad range of U.S. dollar-denominated, investment grade corporate bonds from issuers with favorable environmental, social and governance (ESG) practices. | ||||
| Nuveen ESG US Aggregate Bond | NUBD | 0.20% | 342 | 9/29/17 |
| Invests in a diversified portfolio of U.S. investment grade bonds that satisfy certain environmental, social and governance (“ESG”) criteria. | ||||
| PIMCO Enhanced Short Maturity Active ESG | EMNT | 0.27% | 144 | 12/10/19 |
| Seeks maximum current income, consistent with preservation of capital and daily liquidity, while incorporating PIMCO's ESG investment strategy. | ||||
| Sage ESG Intermediate Credit | GUDB | 0.35% | 94 | 10/30/17 |
| Seeks to provide investors access to a diversified portfolio of investment grade corporate bonds issued by companies with best-in-class ESG characteristics, strong fundamentals, and a high degree of liquidity. | ||||
| Vanguard ESG US Corporate Bond | VCEB | 0.12% | 255 | 9/22/20 |
| Tracks U.S. investment grade corporate bonds with over a year left to their maturity dates and screens its issuers along various ESG criteria.
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| Xtrackers BBG US Investment Grade Corporate ESG | ESCR | 0.24% | 511 | 3/3/15 |
| Tracks an index of US investment-grade corporate bonds that are screened for ESG aspects. | ||||
US High Yield Bonds
| Fund | Ticker | Expense | Holdings | Inception |
|---|---|---|---|---|
| Nuveen ESG High Yield Corporate Bond | NUHY | 0.35% | 203 | 9/25/19 |
| Invests in a diversified portfolio of U.S. dollar-denominated, high yield, fixed-rate corporate bonds that satisfy certain environmental, social and governance (“ESG”) criteria. | ||||
| Xtrackers JPMorgan ESG USD High Yield Corporate Bond | ESHY | 0.19% | 277 | 3/3/15 |
| Tracks an index of US Dollar-denominated high-yield corporate bonds in the developed markets that are screened by ESG factor. | ||||
Global / International Bonds
| Fund | Ticker | Expense | Holdings | Inception |
|---|---|---|---|---|
| iShares Global Green Bond | BGRN | 0.20% | 463 | 11/13/18 |
| Provides exposure to investment grade global green bonds where the use of proceeds are directly tied to promote climate or other environmental sustainability purposes through independent evaluation. | ||||
| VanEck Vectors Green Bond | GRNB | 0.23% | 162 | 3/3/17 |
| An ESG-focused global fund that invests in bonds issued to finance “green” projects—primarily solar, wind, and low-carbon construction. | ||||
| Xtrackers JPMorgan ESG Emerging Markets Sovereign | ESEB | 0.44% | 120 | 3/3/15 |
| Invests in US-Dollar denominated emerging markets sovereign bonds based on ESG principles. Bonds include both investment-grade and high yield fixed, floating rate, and capitalizing/amortizing bonds. | ||||
In addition to the ETFs, there are also numerous ESG bond mutual funds.