iShares $ CORP BOND SRI 0-3YR UCITS ETF USD (DIST)

Issuer: iShares

Asset Class: Fixed Income

TER: 15bps

Trading Currency: USD

Pays Income: False

Listing Date: 14 Dec 2018

Ticker: SUSU

ISIN: IE00BZ048579

This fund provides targeted exposure to short-term, investment-grade corporate bonds from issuers within the United States. The core of its strategy lies in its rigorous application of socially responsible investing (SRI) principles, which builds upon a foundational Environmental, Social, and Governance (ESG) framework. This means the portfolio is constructed by screening out companies involved in controversial sectors such as certain weapons, tobacco, thermal coal, and oil sands. The investment vehicle aims to replicate the performance of a benchmark index composed of fixed-rate bonds from companies that successfully pass these stringent ethical and sustainability criteria, offering a values-based approach to fixed income.

By focusing on bonds with a remaining maturity of between zero and three years, the fund maintains a low duration profile. This characteristic makes it inherently less sensitive to fluctuations in interest rates compared to funds holding longer-dated bonds, a crucial feature for investors prioritizing capital preservation in a volatile rate environment. This financial instrument is designed for those seeking a regular income stream, as evidenced by its distributing share class structure, combined with the relative safety of high-quality corporate credit from sustainable issuers.

The product is well-suited for individuals and institutions looking to align their fixed-income allocation with their personal values without forgoing the traditional benefits of a bond investment. It can serve as a defensive core holding in a diversified portfolio, offering stability and income potential. It also acts as a compelling alternative to holding cash, particularly for those with a strong conviction in sustainable and responsible investment outcomes.