Blackrock, the world’s largest asset manager, has launched a new fixed income exchange-traded fund (ETF) following environmental, social and governance (ESG) investing principles. The iShares ESG US Aggregate Bond ETF joins an existing range of iShares Sustainable Core ESG ETFs that involves four equity ETFs and two other bond ETFs.

Blackrock expects ESG ETFs’ asset under management (AUM) to grow 16 times from the current US$25 billion to over US$400 billion by 2028 on the back of increased interest from US wealth investors on top of continued strong demand from institutions. ‘Sustainable investing is becoming mainstream investing,’ said Brian Deese, head of sustainable investing at BlackRock. The ESG criteria compliant indices that the range of funds seek to track exclude securities of producers and retai