The number of ethical bond exchange-traded funds (ETF) based in the UK has doubled – although only to two.
But entry into the space by ETF behemoth iShares could signal a future boom in the size of the market. The iShares Euro Corporate Bond Sustainability Screened 0-3yr UCITS ETF (SUSE) tracks an index comprised of bonds that meet the criteria of an ethical screen. But just how ethical are the holdings and why are there so few ETFs in this space?
How is an ethical bond ETF constructed?