iShares Smart City Infrastructure UCITS ETF USD (Dist)
| Issuer: iShares |
| Asset Class: Equity |
| TER: 40bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 23 Feb 2021 |
| Ticker: CT2B |
| ISIN: IE00BKTLJB70 |
This fund offers targeted exposure to the short-term, sterling-denominated investment-grade corporate bond market. It specifically focuses on bonds with remaining maturities between zero and five years. This short duration profile makes the fund less sensitive to changes in interest rates compared to funds holding longer-term bonds, which can be a key consideration for risk-averse investors or during periods of monetary policy tightening. The portfolio consists of bonds issued by corporations from various developed market countries, providing a degree of diversification across issuers and sectors.
A core feature of this investment vehicle is its integration of Environmental, Social, and Governance (ESG) criteria. The underlying benchmark index employs a sophisticated screening process which excludes companies involved in controversial business activities such as tobacco, controversial weapons, and thermal coal. Furthermore, the index re-weights the remaining eligible bonds to favor issuers with stronger ESG ratings. This “best-in-class” approach aims to provide a similar risk and return profile to the broader short-term corporate bond market while tilting the portfolio towards companies demonstrating superior sustainability practices.
This product is designed for investors seeking a stable income stream from high-quality corporate debt while also adhering to responsible investment principles. Its focus on short-maturity bonds makes it suitable as a core holding for those looking to manage interest rate risk within their fixed-income allocation. The ESG overlay appeals to individuals and institutions aiming to align their investments with their values without necessarily sacrificing the potential for competitive returns. It can serve as a building block for a diversified portfolio, offering a blend of capital preservation, income generation, and a positive sustainability impact.
