iShares € High Yield Corp Bond ESG UCITS ETF GBP-Hedged (Acc)
| Issuer: iShares |
| Asset Class: Fixed Income |
| TER: 27bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 28 Apr 2023 |
| Ticker: EHYG |
| ISIN: IE000YZVB4R7 |
This investment vehicle provides targeted exposure to the European high-yield corporate bond market while adhering to strict environmental, social, and governance (ESG) principles. It is designed for investors seeking higher income potential from sub-investment-grade, Euro-denominated corporate debt. The fund’s strategy incorporates a Socially Responsible Investing (SRI) screen, which systematically excludes issuers involved in controversial activities such as controversial weapons, tobacco, thermal coal, and oil sands. This dual focus on yield and sustainability aims to align financial objectives with ethical considerations. The fund is structured to physically hold a representative sample of the bonds from its benchmark, offering direct exposure to the underlying assets.
This product is suitable for investors with a moderate-to-high risk tolerance who are looking to enhance the yield component of their fixed income portfolio. The exposure to high-yield bonds entails higher credit risk and price volatility compared to investment-grade debt, but it also offers the potential for greater returns. The inclusion of ESG and SRI criteria appeals to those who wish to invest responsibly. Furthermore, this specific share class is currency-hedged, a key feature for investors whose home currency is not the Euro. The hedging strategy aims to mitigate the impact of currency fluctuations, reducing foreign exchange risk and making the bond's underlying return characteristics more prominent.
In essence, this fund offers a strategic solution for diversifying a portfolio with European high-yield corporate debt. It combines the pursuit of attractive income streams with a robust ESG and SRI framework. The currency-hedged nature of this share class makes it particularly relevant for investors seeking to neutralize exchange rate volatility, allowing them to focus on the credit and interest rate dynamics of the European high-yield market. It serves as a core holding or a tactical addition for those aiming to build a more sustainable and potentially higher-yielding fixed-income allocation.
