Environmental, social, and governance (ESG) hasn't lost traction after exploding in popularity after the 2020 pandemic. Corporations are playing a bigger role in the issuance of ESG or “green” bonds, paving the way for opportunities in funds like the Vanguard ESG U.S. Corporate Bond ETF (VCEB).
Environmental, social, and governmental (ESG) investing is proving to be a prevailing trend. Amid a growing bond market, consider a specific ETF from Vanguard.
Climate-conscious investors may want to consider more exposure to green bonds. According to a Reuters report, green bond issuers tend to excel at reducing greenhouse gas emissions, per a Bank for International Settlements study.
The theme of environmental, social and governance (ESG) continues to be an investment segment that is generating interest among investors. That's especially the case in the debt market as S&P Global is forecasting that issuance in green bonds could hit over $1 trillion by the end of this year.
The global transition to clean energy technologies should open opportunities for fixed income investors in bond funds that focus on the ESG theme. The ESG theme hit a zenith in the past few years.