Vanguard has created its first fixed-income ESG ETF for retail U.S. investors. The Vanguard ESG U.S. Corporate Bond ETF (VCEB) gives investors exposure to the corporate bond market and tracks the performance of the Bloomberg Barclays MSCI U.S. Corporate SRI Select Index.
“Investors are increasingly seeking opportunities to better align their investment objectives with their personal values,” said Kaitlyn Caughlin, head of Vanguard’s portfolio review department. “Vanguard’s new ESG U.S. Corporate Bond ETF better enables them to do exactly that. The ETF will provide our clients an efficient means of accessing the credit markets while employing a meticulous exclusionary screening process developed by MSCI and implemented by Bloomberg.”
VCEB is listed on the Chicago Board Options Exchange with an expense ratio of 0.12%.
Vanguard also reports that assets in ESG fixed income mutual funds and ETFs more than doubled to $1.8 billion after sitting at $859 million in 2019.