LYXOR ETF expands its range of bond products

(hooly-news.com) – Lyxor is expanding its range of bond products with high-yield bond ETFs with sustainable exposure. The structure is launching three new products designed to provide more sustainable exposure to high yield bonds. The three funds, USD High Yield, EUR High Yield and Global High Yield, use the Bloomberg Barclays MSCI Sustainable SRI Indexes, which apply sustainability filters to reduce exposure to controversial and poorly rated ESG issuers.

This launch of high-yield ETF follows a decision made in 2019 by Lyxor to transfer the majority of its Investment Grade bond ETFs to the Bloomberg Barclays MSCI sustainable SRI indices using the same ESG rating method. Bond ETFs following an ESG strategy represent 2.2% of the universe of European bond ETFs. However, in 2019, they collected 3.7 billion euros in new net assets (6.9% of the total asset collection of bond ETFs).

“The ESG rating for high-yield products is one of the latest innovations in bond indexing. By applying an ESG approach to the universe of high-yield bonds, we are able to deviate considerably from parent indices, by offering a potentially more conservative risk profile “adds Philippe Baché, head of fixed income at Lyxor ETF.

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