New L&G ETFs on Xetra: Government bonds from emerging markets and China with a focus on sustainability

Release date: 09 Dec 2020 | Deutsche Börse Cash Market

New L&G ETFs on Xetra: Government bonds from emerging markets and China with a focus on sustainability

Since Wednesday, two new exchange traded funds issued by Legal & General Investment Management are tradable on Xetra and Börse Frankfurt.

The L&G ESG Emerging Markets Government Bond (USD) 0-5 Year UCITS ETF enables investors to invest in US dollar-denominated government and quasi-government bonds from emerging markets. In addition to a residual maturity of three months to five years and a minimum outstanding volume of USD 500 million, both fixed and floating rate bonds are included.

The L&G ESG China Bond CNY UCITS ETF offers investors access to fixed income bonds denominated in Chinese renminbi from the Chinese government and the three policy banks (China Development Bank, Agricultural Development Bank of China, Export-Import Bank of China). The bonds must be tradable in the Chinese interbank market and have a minimum residual maturity of one year. Bonds of the three policy banks are limited to a maximum of 20 per cent.

Both ETFs focus on sustainable investments. Issuers with a higher ESG rating, so-called green bonds, are weighted more heavily and those with a lower ESG rating are under-weighted or excluded. In principle, issuers with income from the steam coal, tobacco and weapons sectors are excluded.

Name

Asset class

ISIN

Ongoing charges

Distribution policy

Reference index

L&G ESG Emerging Markets Government Bond (USD) 0-5 Year UCITS ETF

Bond ETF

IE00BLRPQP15

0.25 per cent

Distributing

J.P. Morgan ESG EMBI Global Diversified Short-term Custom Maturity Index

L&G ESG China Bond CNY UCITS ETF

Bond ETF

IE00BLRPQL76

0.30 per cent

Distributing

J.P. Morgan China Custom Liquid ESG Capped Index

The product offering in Deutsche Börse's XTF segment currently comprises a total of 1,607 ETFs. With this selection and an average monthly trading volume of around €15 billion, Xetra is the leading trading venue for ETFs in Europe.

Further information