The company says the new Exchange Traded Fund is designed to be a “core building block for ESG-aware portfolios.”

The fund adds to Vanguard’s range of five other ESG funds which have OCFs (Ongoing Fund Charges) of between 0.14% and 0.25%.

The new fund will aim to seeks to track the Bloomberg Barclays MSCI Global Corporate Float-Adjusted Liquid Bond Screened Index and provides exposure to global corporate fixed income. 

The index excludes companies investing in weapons, non-renewable energy, vice products and controversies related to the UN Global Compact Principles.

Fong Yee Chan, head of ESG strategy, UK and Europe, said, “Vanguard continues to seek ways to deliver long-term ESG strategies to give value to investors. For those investors wishing to mitigate ESG risk or avoid companies that don’t align with their values, we are pleased to offer access to an ESG global corporate bond strategy through the new Vanguard ESG Global Corporate Bond UCITS ETF.”

The Vanguard ESG Global Corporate Bond UCITS ETF will be managed by Vanguard’s Fixed Income Group.  

Vanguard’s ESG line-up: