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After list of three new sustainable exchange-traded index funds on the New York Stock Exchange earlier this month, Dimensional Fund Advisors launched a new sustainable bond fund on NYSEDimensional Global Sustainability Fixed Income ETFs (DFSB ). According to the issuer, DFSB provides value-added exposure to global fixed income securities, seeks higher expected returns through systematic exposure to duration, credit and currency of issue, and applies strong risk management.
The fund seeks to reduce carbon footprint exposure by excluding or underweighting issuers with high carbon intensity or potential emissions from reserves. The strategy also applies targeted environmental and social exclusions.
“We believe that investing well and integrating sustainability values need not be mutually exclusive. We believe we have been effectively implementing sustainability strategies with this dual purpose for nearly 15 years,” said Isabelle Williams, senior investment strategist at Dimensional.
Williams added: “Overall, our research shows that there is no strong evidence that ESG only these factors are a systematic source of higher returns or lower risk. But ESG considerations can be incorporated into diversified portfolios that target higher expected returns.
In a press release announcing the launch of its three sustainable equity ETFs, Dimensional co-CEO and Chief Investment Officer, Gerard O’Reilly, said, “Dimensional’s approach to sustainable investing incorporates exclusions and emissions-based weighting criteria to reduce carbon footprint exposure to both between and within sectors.
“In just a few years, Dimensional Funds has managed to capture the attention of advisors with its low-cost active management. ETFs range,” said Todd Rosenbluth, head of research at VettaFi. “Continued expansion of the product line to include sustainable strategies provides more tools for advisors to build asset allocation strategies.”
DFSB has an expense ratio of 0.25%.
For more information on Dimensional ETFs, visit dimension.com/etfs.
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