Goldman Sachs Global Green Bond UCITS ETF

Issuer: Goldman Sachs

Asset Class: Fixed Income

TER: 23bps

Trading Currency: USD

Pays Income: False

Listing Date: 31 May 2024

Ticker: GSBG

ISIN: IE000REVDBO3

This financial instrument offers investors a targeted approach to sustainable investing by providing exposure to a global portfolio of green bonds. The primary objective is to generate returns by investing in debt securities whose proceeds are explicitly used to finance or re-finance projects with clear environmental benefits. These projects typically include renewable energy, energy efficiency, clean transportation, and sustainable water management. By focusing on bonds that adhere to internationally recognized standards like the Green Bond Principles, the portfolio ensures transparency and verifiable positive impact, allowing investors to contribute directly to the global transition towards a more sustainable economy.

The strategy involves investing in a diversified range of investment-grade and high-yield green bonds issued by corporations, governments, and supranational entities across the world. This global diversification helps to mitigate concentration risk while capturing opportunities in various markets. The investment process combines rigorous credit analysis with a proprietary green bond assessment framework to select securities that not only offer attractive risk-return characteristics but also meet stringent criteria for environmental impact. This particular share class is also hedged, which aims to minimize the impact of currency fluctuations between the fund's underlying holdings and its trading currency, providing a more stable return profile for investors with that base currency.

This product is well-suited for investors looking to integrate environmental, social, and governance (ESG) considerations into their fixed-income allocation. It can serve as a core or satellite holding within a diversified portfolio, offering the potential for stable income and capital preservation typical of bond investments, while simultaneously aligning capital with climate-positive initiatives. It represents a compelling option for those who wish to achieve financial returns without compromising on their commitment to environmental sustainability, making it a valuable tool for building a responsible and forward-looking investment portfolio.