Invesco launches ESG global bond ETF

Firm expects corporate bond flows to continue in 2023

Invesco has added an ESG bond ETF to its corporate bond range to meet investor demand for fixed income ETFs.

Invesco Global High Yield Corporate Bond ESG UCITS ETF tracks the Bloomberg MSCI Global High Yield Liquid Corporate ESG Weighted SRI Bond Index and has an annual charge of 0.25%.

Bond funds captured nearly 40% of all ETF net inflows last year, with government bonds taking the lion’s share of fixed income assets, the firm said. ETFs incorporating ESG considerations gathered 60% of the overall market flows.

“It’s clear from market data that investors are increasingly choosing ETFs for the fixed income components of their portfolios,” said Gary Buxton (pictured), head of EMEA ETFs and indexed strategies at Invesco.

Paul Syms, head of EMEA fixed income ETF product management, added: “The pick-up in corporate bond flows seen towards the end of the year could continue in 2023 as a change in Fed focus away from fighting inflation and towards stimulating growth may support credit and high yield.”