iShares € Corp Bond SRI UCITS ETF
| Issuer: iShares |
| Asset Class: Fixed Income |
| TER: 15bps |
| Trading Currency: EUR |
| Pays Income: False |
| Listing Date: 28 Jun 2018 |
| Ticker: SUOE |
| ISIN: IE00BYZTVT56 |
This investment fund provides targeted exposure to the investment-grade, fixed-rate corporate bond market denominated in Europe's single currency, specifically for those looking to integrate sustainability into their portfolio. The strategy is centered around a benchmark that applies stringent Environmental, Social, and Governance (ESG) and Socially Responsible Investing (SRI) criteria. It systematically excludes issuers involved in controversial business activities, such as weapons, tobacco, thermal coal, and others that do not meet specific ESG standards. This makes the fund a compelling choice for investors aiming to align their fixed-income allocation with their personal values, without sacrificing access to a core asset class.
The portfolio consists of a diversified basket of bonds issued by companies across various sectors, including financials, industrials, and utilities, primarily from developed European nations. By holding numerous individual bonds, the fund mitigates concentration risk associated with single issuers. It can serve as a core component in a balanced portfolio, offering the potential for regular income and a degree of capital preservation, which is characteristic of investment-grade debt. As a distributing share class, it is particularly suitable for investors seeking a periodic cash flow from their investments, generated from the coupon payments of the underlying bonds.
This product is tailored for investors with a moderate risk appetite who are looking for a stable income stream while also making a positive environmental and social impact. It is well-suited for those wanting to reduce the carbon footprint of their investments or build a sustainable, long-term portfolio. The focus on high-quality corporate credit provides a defensive alternative to equities and a potential yield enhancement over government bonds, making it a strategic holding for diversifying and stabilizing a portfolio with a conscience.
