iShares launches two new government bonds ETFs with climate change focus
Two new iShares ETFs focused on government bonds with a climate change focus are now trading on Xetra and Börse Frankfurt.
The iShares EUR Govt Bond Climate UCITS ETF EUR enables investors to invest in euro-denominated fixed income government bonds of eurozone countries that have an investment grade rating and a minimum residual maturity of one year.
The underlying index is overweight in bonds from countries that are less exposed to the effects of climate change. For this purpose, the physical risk of climate change (eg natural disasters) and the precautionary measures taken by the respective country are considered, as well as the cost of reducing greenhouse gas emissions. Investors have the choice between an accumulating and a distributing share class.