KGI 15+ Year US BBB ESG Sustainable Corporate Bond ETF (00890B)

Overview

The KGI 15+ Year US BBB ESG Sustainable Corporate Bond ETF is a specialized bond exchange-traded fund that aims to replicate the performance of corporate bonds possessing a BBB rating, issued by US corporations. This ETF stands out by exclusively focusing on bonds that not only have long-term maturities (15 years or more) but also meet stringent environmental, social, and governance (ESG) criteria. With the Bloomberg MSCI US Corporate BBB Senior SRI Index serving as its benchmark, the fund positions itself as a viable option for investors looking to incorporate sustainable and ethical considerations into their investment strategies. This focus on long-duration investment grade corporate bonds allows it to offer exposure to a segment of the market known for higher sensitivity to interest rate changes, providing an additional layer of financial dynamics for investors. The integration of sustainability principles underscores a commitment to responsible investing, distinguishing it within Taiwan's financial market landscape by offering an alternative to traditional equity-based sustainable investment options.

Products and Services

• Long-Term Investment Grade Corporate Bonds

  As its core offering, the ETF focuses on investment grade corporate bonds with maturities exceeding 15 years. By targeting this specific segment of the bond market, the fund provides investors an opportunity to engage with securities that exhibit higher interest rate sensitivity. This distinguacy enables participants to potentially benefit from significant yield enhancements compared to shorter-duration bonds, while still adhering to the investment grade safety net characterized by their BBB ratings.

• ESG Screening and Sustainability Integration

  Central to the fund's strategy is the incorporation of ESG criteria into its selection process, aligning with the growing demand for sustainable investment options. This integration underscores the fund's efforts to screen issuers for responsible business practices and robust ESG credentials, demonstrating a commitment to ethical investing. Through this rigorous selection process, the ETF ensures that its constituents are not only financially viable but also operate in a manner that is socially responsible and environmentally sustainable, thereby contributing to the broader goal of promoting sustainable finance.