The ESG 1-5 Year USD Corporate Bond ETF tracks the Bloomberg Barclays MSCI US Corporate 1-5 Year ESG Focus Index. Similar to SUSC, SUSB includes investment-grade corporate debt that have positive ESG characteristics, except it leans toward the shorter end of the yield curve.
Furthermore, BlackRock has lowered the expense ratio on iShares MBS ETF (NYSEArca: MBB) to 0.09% from 0.27% to establish MBB as the investor vehicle of choice for mortgage debt exposure.
“BlackRock’s founders pioneered the MBS markets and managing mortgage risk is deep in our firm’s DNA. With a looming unwind of the Federal Reserve’s $2 trillion mortgage portfolio, now is the time for investors to consider MBB for a core part of any MBS investment strategy,” Small said. “By lowering the price to make the fund competitive with direct investment in mortgage securities, institutions will have a much more efficient, liquid option for dynamically managing mortgage-backed exposures. Clients have responded positively to past efforts by BlackRock to lower prices on certain products in order to offer them new ways to access specific exposures. ”
For more information on new fund products, visit our new ETFs category.