Solactive is pleased to announce a further partnership with KraneShares, to launch the KraneShares Sustainable Ultra Short Duration Index ETF, which tracks the Solactive ISS Sustainable Select 0-1 Year USD Corporate IG Index. This innovative index provides a sustainable investment vehicle that combines rigorous ESG standards with short-term investment-grade corporate debt.
The Solactive ISS Sustainable Select 0-1 Year USD Corporate IG Index is designed to measure the performance of US dollar-denominated, investment-grade corporate debt with a maturity of up to one year. The index provides exposure to a portfolio based on ISS ESG climate analysis and is harmonized with a 1.5°C scenario by 2050, while maintaining a similar distribution of credit and interest rate risk.
The index applies a rigorous selection and weighting process. The selection criteria include strict ESG standards and exclude bonds from issuers involved in non-sustainable activities such as fossil fuel production, controversial weapons, and various other activities. The weighting methodology aims to meet all carbon emission and intensity targets while minimizing index turnover and maintaining the risk profile of the benchmark index.
The ETF listed on July 25th on the New York Stock Exchange (NYSE) with the ticker code: KCSH.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “We are delighted to extend our partnership with KraneShares into the area of ‘green cash’ investments. This index adheres to strict screening criteria and provides a powerful tool to invest in short-term bonds while ensuring the sustainability of the underlying assets. With this launch, we believe we are setting an important milestone in the sustainable investing fixed income indexing space.”
Luke Oliver, Head of Climate Investments at KraneShares, commented: “With investors looking to diversify their equities, and with few incentives to extend duration, KCSH seeks to maximize current income through ultra-short duration, investment grade bonds. As with the rest of KraneShares climate-focused suite of ETFs, KCSH can offer compelling potential returns while supporting the decarbonization of the global economy.”
