Sage Advisory launches ESG corporate bond ETF

Nov 1st, 2017 | By | Category: Fixed Income

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Sage Advisory, an investment management firm based in Austin, Texas, has unveiled its first independently issued ETF, the Sage ESG Intermediate Credit ETF (Cboe: GUDB). The ETF has been listed on the Cboe ETF Marketplace (formerly BATS Exchange).

Sage Advisory launches first ETF

The ETF is the first to be launched by the Texas-based investment management firm.

Sage is the portfolio manager for an existing active fixed income ETF, the AdvisorShares Sage Core Reserves ETF (NYSE Arca: HOLD), launched in January 2014 in partnership with active ETF specialist AdvisorShares, but GUBD marks the first time the firm has issued a fund on its own.

GUDB physically replicates the Sage ESG Intermediate Credit Index, which offers exposure to US corporate bonds in the Barclays Capital US Intermediate Credit Bond Index that meet Sage’s environmental, social and governance (ESG) criteria.

The Sage ESG Intermediate Credit Index uses Sage’s ESG factor analysis framework which is designed to maximise exposure to positive ESG characteristics while maintaining a high level of liquidity.

Robert G. Smith, president and CIO of Sage Advisory, commented: “Investors are realising that ESG strategies do not require a sacrifice in returns. Combining this mindset with the rapidly growing popularity of ETFs makes the timing perfect. We’re thrilled to be launching GUDB on one of the world’s largest exchanges, where we believe the strategy will have the greatest potential positive Impacts on intended ESG criteria.”

Laura Morrison, senior vice president, global head of ETFs at Cboe, added: “One of the Cboe’s guiding principles is good citizenship, and so it’s been a particular pleasure working with the Sage team to bring this product, which blends ESG issues with broad diversification and solid risk management, to market.”

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