Vanguard Ethically Conscious Global Aggregate Bond Index (Hedged) ETF

Product Name

Vanguard Ethically Conscious Global Aggregate Bond Index (Hedged) ETF

Issuer

Vanguard

Category

Investment

Type

Exchange Traded Fund - ETF (inc. ETP)

Target

Retail, Wholesale

Certified Since

2018

Asset Classes

Fixed income

Markets

Australia

Investment Approaches

Negative Screening

It Includes:

  • No inclusions5 No specific themes

It has some level of screening for:

  • Riaa icons 41 Alcohol
  • Riaa icons 33 Fossil fuels
  • Riaa icons 42 Gambling
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

It fully excludes:

  • Riaa icons 36 Armaments
  • Riaa icons 52 Human rights abuses
  • Riaa icons 38 Labour rights violations
  • Riaa icons 50 Nuclear power

Overview

The Fund seeks to track the return of the Bloomberg Barclays MSCI Global Aggregate SRI Exclusions Float Adjusted Index hedged into Australian dollars before taking into account fees, expenses and tax. The Bloomberg Barclays MSCI Global Aggregate SRI Exclusions Float Adjusted Index hedged into Australian dollars is a market value weighted index comprised of global investment grade securities (bonds). This includes government, government-related, corporate and securitised fixed rate bonds from both developed and emerging market issuers. Investors should be aware that the Index provider’s screening process does not review government bonds, securitised fixed rate bonds and some company structures, particularly government related corporations and non-listed companies, for ties to these business activities. Bonds issued by these non-screened entities may be included in the fund.


Description


The index excludes companies with significant business activities involving fossil fuels, alcohol, tobacco, gambling, military weapons and civilian firearms, nuclear power, adult entertainment and conduct related screens based on severe controversies.  Investors should be aware that the Index provider’s screening process does not review government bonds, securitised fixed rate bonds and some company structures, particularly government related corporations and non-listed companies, for ties to these business activities. Bonds issued by these non-screened entities may still be contained in the Fund. Details on the benchmark methodology can be accessed by visiting Bloomberg Barclays at www.bloomberg.com/professional/product/indices/bloomberg-barclays-indices-factsheets-publications/.

The fund aims to hold an appropriate number of securities so as to produce a portfolio risk exposure profile consistent with that of the index.  This is achieved by holding a representative sample of securities included in the index or securities that provide similar characteristics to those securities in the index.  Security weightings in the Fund may vary from the index weightings.  The Fund may gain exposure to securities directly or through interests in other funds, such as exchange traded funds.
 
The Fund may utilise derivative instruments including futures traded on a licensed exchange and over the counter derivative financial instruments.  Derivative instruments are used to manage the overall interest rate and credit risk exposure of the Fund where it is either unable to invest directly in physical securities or is in the Fund’s best interest to do so.  Derivative financial instruments will not be used to leverage the assets of the Fund.  Vanguard will seek to hedge the Fund’s currency exposure back to the Australian dollar using forward foreign exchange contracts.

*RIAA has received written undertaking from product issuer to update ESG-criteria, assessed as part of certification, either at: 
Next roll of product collateral, Internal policy update and/or 
Next reporting/disclosure cycle 

Other products certified by the Responsible Investment Association Australasia (RIAA)

Vanguard Ethically Conscious Australian Shares ETF (VETH)

Vanguard Ethically Conscious Australian Shares Fund

Vanguard Ethically Conscious Global Aggregate Bond Index Fund (Hedged) - AUD Hedged

Vanguard Ethically Conscious Global Aggregate Bond Index Fund (Hedged) - NZD Hedged

Vanguard Ethically Conscious International Shares Index ETF (VESG)

Vanguard Ethically Conscious International Shares Index Fund

Vanguard Ethically Conscious International Shares Index Fund - AUD Hedged

Vanguard Ethically Conscious International Shares Index Fund - NZD Hedged

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