Vanguard ESG EUR Corporate Bond UCITS ETF (Dist)

Issuer: Vanguard

Asset Class: Fixed Income

TER: 11bps

Trading Currency: GBP

Pays Income: False

Listing Date: 17 Nov 2022

Ticker: V3RF

ISIN: IE000F37PGZ3

This fund offers actively managed exposure to the Euro-denominated, investment-grade corporate bond market, integrated with a rigorous Environmental, Social, and Governance (ESG) framework. The primary objective is to outperform the broader market, as represented by the Bloomberg Euro Corporate Bond Index, by leveraging a proprietary credit research process. The investment manager focuses on identifying and selecting a diverse range of fixed-income securities that not only present attractive risk-return characteristics but also meet stringent ESG criteria.

The ESG screening process is comprehensive, excluding issuers involved in specific controversial sectors such as non-renewable energy, weapons, and tobacco. Furthermore, it filters out companies that violate the principles of the UN Global Compact or are embroiled in significant controversies. This dual focus on financial fundamentals and responsible investing principles aims to deliver sustainable, long-term performance while mitigating ESG-related risks.

By combining active management with a strong ESG mandate, the product provides a core fixed-income solution for investors seeking to align their portfolio with their values without sacrificing the potential for alpha generation. The semi-annual distribution feature also provides a regular income stream, making it suitable for those who require periodic cash flows from their investments. It represents a modern approach to corporate bond investing, addressing the growing demand for both financial returns and positive societal impact.