Amundi Global High Yield Corporate Bond ESG - UCITS ETF DR - USD (C)

Issuer: Amundi ETF

Asset Class: Fixed Income

TER: 25bps

Trading Currency: USD

Pays Income: False

Listing Date: 13 Feb 2020

Ticker: GHYU

ISIN: LU2099295466

This fund provides exposure to the global high-yield corporate bond market while integrating a strong Environmental, Social, and Governance (ESG) framework. It aims to track an index composed of fixed-rate, sub-investment-grade corporate bonds from issuers worldwide. The strategy is designed for investors looking for potentially higher income generation compared to investment-grade debt, but who also want to align their portfolios with sustainability principles. The inclusion of an ESG filter means the portfolio excludes companies involved in controversial activities and prioritizes those with strong ESG ratings.

The investment process begins with the broad universe of global high-yield corporate bonds and applies a rigorous screening methodology. This involves excluding issuers with low MSCI ESG ratings and those involved in controversial sectors such as weapons, tobacco, and thermal coal. A key feature is the 0-5 year maturity cap on the underlying index, which helps to manage interest rate sensitivity. By focusing on shorter-dated bonds, the strategy can offer a degree of protection against rising rates compared to broader high-yield benchmarks with longer maturities. This makes it a potentially attractive option for income-seeking investors in a changing rate environment.

This product offers a dual-pronged approach, targeting both higher yield potential and responsible investing. It addresses the growing demand for investment solutions that do not compromise on ethical standards while pursuing income goals. By combining a global reach, a high-yield profile, a specific maturity focus to mitigate duration risk, and a robust ESG overlay, this fund serves as a core fixed-income holding for investors aiming to enhance their portfolio's yield and sustainability credentials simultaneously.