Insights

Is there an exposure that meets the needs of USD corporate bond investors while also aligning with ESG considerations? We think the answer is yes.

Many investment products consider environmental, social and governance (ESG) ratings, either at the initial construction phase or as part of the ongoing management process. But what are the investment implications of using ESG ratings?

Andreas Zingg, Head of Multi-Asset Solutions, Vanguard Europe, explains why the risk and return characteristics are different for ESG building blocks – and how advisers can take this into account when constructing portfolios for clients with ESG preferences.