Lyxor has cross-listed its Lyxor Euro Corporate Bond UCITS ETF on Nasdaq Stockholm.
The Lyxor Euro Corporate Bond UCITS ETF has cross-listed on Nasdaq Stockholm.
The ETF is linked to the Bloomberg Barclays MSCI EUR Corporate Liquid SRI Sustainable Index, which provides exposure to the euro-denominated corporate bond market while incorporating socially responsible selection criteria.
The index harnesses Bloomberg’s expertise in fixed income indexing while leveraging research from MSCI to exclude issuers in controversial industries as well as those with low environmental, social, and governance (ESG) ratings.
Constituents are selected from the parent Bloomberg Barclays EUR Corporate Index which covers investment-grade corporate bonds denominated in euros and issued by European and non-European corporates. Eligible bonds must have a remaining maturity of at least one year and a minimum amount outstanding of €300 million.
Issuers embroiled in severe ESG-related controversies are removed as well as those with substantial revenue derived from adult entertainment, alcohol, gambling, tobacco, controversial and military weapons, civilian firearms, nuclear power, and genetically modified organisms.
The remaining issuers are then assigned ESG ratings using in-house analytics from MSCI, with the index provider using a seven-point scale from ‘AAA’ to ‘CCC’ based on how the company manages key issues relative to industry peers. A minimum MSCI ESG rating of BBB is required to be included in the index.
Constituents are weighted by market value outstanding, and the index is rebalanced on a monthly basis.
The index currently contains over 1,800 bonds of which approximately 45% are BBB rated, 45% A rated, 9% AA rated, and 1% AAA rated. The yield of the index is approximately 0.6%, and its modified duration is around 5 years.
The ETF comes with an expense ratio of 0.20% and currently houses approximately €650 million in assets under management across listings on London Stock Exchange, Xetra, Euronext Paris, Borsa Italiana, and SIX Swiss. Income is accumulated within the portfolio.
The new listing on Nasdaq Stockholm trades in Swedish krona under the ticker LYXCRPEU SS. Currency exposure between the euro and Swedish krona is hedged on a monthly basis.