Description

This ETF seeks to replicate the performance of the Bloomberg MSCI USD Corporate SRI 0-5 Years PAB Index, which is composed of U.S. dollar-denominated corporate bonds. To be included, bonds must possess an investment-grade rating and have maturities ranging from one month up to, but not including, five years. Furthermore, each bond is required to have a minimum outstanding principal of USD 750 million. A significant emphasis is placed on environmental, social, and governance (ESG) factors; the index only incorporates debt issued by companies achieving an MSCI ESG rating of 'BBB' or higher and an MSCI ESG Controversy score of 1 or greater. The index also implements a robust decarbonization strategy, initially targeting a 50% reduction in absolute greenhouse gas emissions relative to its parent universe, followed by a consistent annual decarbonization trajectory of 7%. Strict exclusion criteria apply, prohibiting investments in companies associated with alcohol, tobacco, gambling, adult entertainment, genetically modified organisms (GMO), nuclear power, civilian firearms, and specific military weapons, as outlined in the index methodology. Comprehensive details about the index and its construction can be found on the Bloomberg Indices website.