BNP Paribas Easy USD Corporate Bond SRI Fossil Free UCITS ETF

Issuer: BNP Paribas Asset Management

Asset Class: Fixed Income

TER: 15

Trading Currency: USD

Pays Income: False

Listing Date: 04 Nov 2025

Ticker: USCB

ISIN: LU2616774076

This fund is designed to closely track the performance of the Bloomberg MSCI US Corporate SRI Sustainable ex Fossil Fuel Bond Index, providing investors with focused exposure to a diversified portfolio of investment-grade, fixed-rate corporate bonds. The strategy centers on physical replication, meaning the fund directly owns the underlying bonds that comprise the index, ensuring a high degree of transparency and direct exposure to the target market. By investing in securities denominated in US dollars, it offers a way to participate in one of the world's largest corporate debt markets through a single, efficiently managed vehicle.

A defining characteristic of this investment product is its stringent adherence to socially responsible investing (SRI) principles. The underlying index employs a rigorous screening methodology powered by MSCI ESG Research, which excludes companies involved in controversial sectors like tobacco, controversial weapons, thermal coal, and oil & gas. In addition, it utilizes a 'best-in-class' approach, selecting issuers that demonstrate superior MSCI ESG ratings compared to their industry peers. This dual-layered screening process ensures the portfolio is not only aligned with broad environmental and social governance values but also specifically excludes companies with significant exposure to the fossil fuel industry.

The product is well-suited for investors who are looking for a core fixed-income holding that provides potential for stable income and capital preservation, while also aligning with their sustainability goals. It allows for participation in the US investment-grade corporate bond market without compromising on environmental principles, making it an excellent tool for those seeking to decarbonise their portfolios. By offering this targeted, values-based exposure in a cost-effective structure, the fund serves as a foundational component for building a diversified and responsible investment portfolio.