iShares USD Corporate Bond ESG UCITS ETF USD GBP Hedged (Dist)

Issuer: iShares

Asset Class: Fixed Income

TER: 17bps

Trading Currency: GBP

Pays Income: False

Listing Date: 25 May 2021

Ticker: SUOP

ISIN: IE00BMWPV702

The fund offers targeted exposure to the US corporate bond market, specifically focusing on companies that meet stringent Environmental, Social, and Governance (ESG) criteria. It aims to track the performance of an index composed of investment-grade, US dollar-denominated corporate bonds, while applying a Socially Responsible Investing (SRI) screen. This screening process excludes issuers involved in controversial business activities such as weapons, tobacco, thermal coal, and others that do not align with specific values-based criteria. This approach allows investors to align their fixed-income allocation with their ethical principles without sacrificing access to the depth and liquidity of the US corporate debt market.

This particular share class is designed specifically for investors whose home currency is Pound Sterling, as it incorporates a currency hedge. This mechanism aims to mitigate the impact of fluctuations between the US dollar and the British pound on investment returns. By neutralizing this currency risk, investors can focus more purely on the credit risk and interest rate dynamics of the underlying US corporate bond portfolio. It is suitable for those seeking a core fixed-income holding that provides regular income potential and capital preservation, combined with a robust ESG framework and protection from adverse currency movements. The distributing nature of the fund means that income generated is paid out to shareholders on a regular basis.