SUSTAINABLE FIXED INCOME INDEXING

A guide for understanding the relationship between returns, risk and sustainability in fixed income indexing

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Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

Whilst sustainable investing has historically been most prominent in the equity market,1 ETFs are helping bring affordable and efficient access also to sustainable fixed income markets.

1Source: Product Segment EMEA ETP Flows YTD ($m). BlackRock as of 16 May 2023

To illustrate this, global assets in sustainable fixed income ETFs have grown almost 9 times higher since 2015 (from $7.8 billion to $70.4 billion).

GLOBAL ASSETS IN SUSTAINABLE FIXED INCOME ETFs

Source: GBI as of 31 December 2022, end of Month AUM provided.

In addition to these investment benefits, fixed income investors may also implement specific sustainable investing goals into their allocations such as carbon intensity reduction targets. You can explore the sustainability characteristics of iShares ETFs on the respective product pages on iShares.com.

Because of their transparency, access, liquidity and efficiency, as well as rules-based methodologies, sustainable fixed income ETFs have the potential to help investors improve their portfolio’s sustainability profile whilst aligning to desired portfolio investment outcomes.