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 specific themes
It has some level of screening for:	Alcohol Fossil fuels Gambling Pornography Tobacco
It fully excludes:	Armaments Human rights abuses Labour rights violations Nuclear power
Broker	Responsible Returns
URL	https://www.responsiblereturns.com.au/investment-options/vanguard-ethically-conscious-global-aggregate-bond-index-hedged-etf/profile

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

Performance results

Product holdings

Product documentation

Supporting documents

Join or sign up for this product

Find a responsible investment adviser to discuss my options

Sign up to learn more and get updates on ethical and responsible investing

The products featured on this site have all achieved certification under the Responsible Investment Association Australasia’s (RIAA) Responsible Investment Certification Program.

Transparency & Verification

What sets these investment products aside from regular ones on the market is they all have some type of responsible or ethical strategy applied to them.

At a minimum, their issuers explain these strategies in public documents and open their offices and books to third party verifiers who check these strategies are implemented according to what you read about them publicly.

You can also click through to see the underlying managers and / or stock holdings in each certified product as well as access a certified product’s recent performance results.

Stewardship & Impact

In July 2019, we lifted our requirements of certified products which we are phasing in over 18 months.

We now require that issuers have organisation-wide commitments to responsible investing and they exercise their responsibilities as stewards of your money - through engaging with companies to improve sustainability performance and voting on shareholder resolutions where possible. All certified products now need to at least avoid significant harm and their issuers will annually report against any sustainability-based claims made by their products. This uplift in program standards is part of our passion for, and on-going commitment to, responsible and ethical investing.

Even though we're lifting the bar, we know your convictions to doing good with your money may be higher and so we have served up our member's certified products with a large dose of transparency and independent verification, so that you can draw your own conclusions from reliable information and choose investments that best suit your individual needs.

*Information Disclosures

While all reasonable efforts are undertaken to ensure information and links on site are current there may be instances where information and documents are updated during the course certification (eg. PDS, Fact Sheet). Certified product issuers are required to update this information as soon as possible on the Responsible Returns site, but there may be some extenuating circumstances impacting timeframes.

The certification program may also assess information provided for certification based on proposed future changes to a responsible investment process that is in-line with Responsible Investment Association Australasia’s (RIAA) Responsible Investment Certification Program criteria. In such instances, members are similarly required to update this information on Responsible Returns within an agreed future timeframe. Old document versions may be reflected on site until this process is finalised.

Vanguard Ethically Conscious Global Aggregate Bond Index (Hedged) ETF

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

Sign up to learn more and get updates on ethical and responsible investing