BNP Paribas Asset Management has launched two sustainable bond ETFS to expand its range to 17.
The BNP Paribas Easy Euro Aggregate Bond SRI Fossil Free ETF and BNP Paribas Easy JPM ESG EMU Government Bond IG 1-3Y ETF are listed on the Euronext Paris, Borsa Italiana and Deutsche Börse Xetra.
The BNP Paribas Easy Euro Aggregate Bond SRI Fossil Free ETF aims to replicate the performance of the Bloomberg MSCI Euro Aggregate ex Fossil Fuel SRI Select (NTR) Index.
It provides investors with exposure to euro-denominated sovereign and corporate investment grade bonds while complying with ESG criteria.
The index excludes issuers in sectors with a negative ESG impact, such as fossil fuels, those in violation of the principles of the United Nations Global Compact and those involved in ESG-related controversies.
The BNP Paribas Easy JPM ESG EMU Government Bond IG 1-3Y ETF tracks the performance of the JP Morgan ESG EMU Government Bond IG 1-3 Year (TR) Index by investing at least 90% of its assets in debt securities issued by eurozone governments, while complying with ESG criteria.
Index constituents are euro-denominated government bonds with maturities between one and three years. The fund complements BNPP AM’s existing offer on the same index for maturities of three to five years and for all maturities.
Both funds are classified as SFDR Article 8. BNPP AM’s sustainable bond index range now includes 17 ETFs covering the entire fixed spectrum, from government bonds to corporate bonds and green bonds.
Lorraine Sereyjol-Garros, global head of development for ETFs and index funds at BNPP AM, said: “Bond ETFs have gained momentum in recent years and their market share by assets under management grew by almost 30% in 2022.
“These launches provide investors with additional asset allocation building blocks that have limited levels of tracking error estimated to be comparable to those of non-ESG benchmarks. Our range also includes Paris-aligned benchmark bond ETFs.”