Lyxor has launched the Lyxor Green Bond (DR) Ucits ETF, the first ETF to provide investors with exposure to the investment grade green bond market.
Through the Solactive Green Bond EUR USD IG Index, Lyxor’s new ETF consists of a portfolio of 116 euro and dollar-denominated investment grade ‘labeled’ green bonds.
To ensure compliance with the ‘Climate Bond Standard’ framework, each bond must be confirmed as eligible for inclusion by the Climate Bond Initiative.
The Climate Bonds Intiative has reported some $170bn of green bonds have been issued since 2012 and expect $150bn more issuances in 2017.
Arnaud Llinas, head of ETFs & Indexing at Lyxor commented: “Lyxor is committed to addressing the challenges of energy transition, and servicing the growing demand for responsible investments. As one of Europe’s great ETF pioneers, we are well placed to help investors achieve their environmental goals.
“This Green Bond ETF marks an important first step in our ambition to offer a full suite of innovative environmental, social and governance themed investments.”