iShares $ High Yield Corp Bond ESG UCITS ETF (Acc)

Issuer: iShares

Asset Class: Fixed Income

TER: 25bps

Trading Currency: USD

Pays Income: False

Listing Date: 15 Nov 2019

Ticker: DHYA

ISIN: IE00BJK55B31

This fund offers targeted exposure to the shorter-duration segment of the U.S. dollar-denominated high-yield corporate bond market, while integrating a robust environmental, social, and governance (ESG) framework. The investment strategy is designed for those seeking enhanced income potential compared to investment-grade debt, but with a focus on responsible investing. By concentrating on bonds with maturities between one and five years, the portfolio aims to mitigate some of the interest rate sensitivity typically associated with longer-term fixed income assets, which can be advantageous in a rising rate environment.

The fund's methodology involves screening for companies with favorable ESG ratings and excluding those involved in controversial sectors such as tobacco, controversial weapons, and thermal coal. It specifically targets bonds rated between BB and B, providing a core allocation to the speculative-grade credit spectrum. This approach allows investors to align their fixed income holdings with their values without necessarily sacrificing the potential for higher yields. It can serve as a satellite holding within a diversified portfolio, enhancing income generation while adhering to sustainable principles.