For reference, here is the same chart on the 1-5 year variety:

It would appear these ESG-based ETFs could easily be swapped into an ETF portfolio replacing an existing corporate bond allocation. A natural second question would be: How do the costs compare? As I think one would expect, each are priced competitively versus their non-ESG counterparts, with SUSC at 18 bps and SUSB at 12 bps.

Taking a step back, the advent of these fixed income ESG portfolios now allows for a more robust ESG-only asset allocation, since previously only the equity portion could be allocated to ESG strategies. While there are still a couple of holes and/or limited options in certain categories in the ESG-only space, these ETFs help in filling out the spectrum. Additionally, these ETFs could also allow an ESG investor to replace an existing mutual fund strategy with an ETF, while this was not a previously available choice. Either way, ESG investing in the ETF space continues to evolve.

Clayton Fresk is a Portfolio Manager at Stadion Money Management, a participant in the ETF Strategist Channel.

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Past performance is no guarantee of future results. Investments are subject to risk and any investment strategy may lose money. The investment strategies presented are not appropriate for every investor and financial advisors should review the terms and conditions and risks involved. Some information contained herein was prepared by or obtained from sources that Stadion believes to be reliable. There is no assurance that any of the target prices or other forward-looking statements mentioned will be attained. Any market prices are only indications of market values and are subject to change. Any references to specific securities or market indexes are for informational purposes only. They are not intended as specific investment advice and should not be relied on for making investment decisions. BESFTRUU is an index composed of U.S. dollar-denominated, investment-grade corporate bonds issued by companies that have positive environmental, social and governance characteristics while exhibiting risk and return characteristics similar to those of the parent index of such index. LUACTRUU measures the performance of the investment grade U.S. corporate bond market. Securities must be fixed rate, U.S. dollar denominated, taxable and rated investment grade as defined by the Index methodology. Inclusion is based on the currency of the issue, not the domicile of the issuer. B15FTRUU is composed of U.S. dollar-denominated, investment-grade corporate bonds having remaining maturities between one and five years and issued by companies that have positive environmental, social and governance characteristics while exhibiting risk and return characteristics similar to those of the parent index of such index. BUC1TRUU measures the investment return of U.S. dollar denominated, investment-grade, fixed rate, taxable securities issued by industrial, utility, and financial companies with maturities between 1 and 5 years. One cannot invest directly in indexes, which are unmanaged and do not incur fees or charges. Founded in 1993, Stadion Money Management is a privately owned money management firm based near Athens, Georgia. Via its unique approach and suite of nontraditional strategies with a defensive bias, Stadion seeks to help investors—through advisors or retirement plans—protect and grow their “serious money.” Contact Stadion at 800-222-7636 or www.stadionmoney.com. SMM-072017-695