Lyxor announces that the Lyxor Green Bond (DR) UCITS ETF, the world’s first ETF with an exposure to green bonds, has reached EUR 500 million in assets under management, trebling its assets in one year. Since its launch in 2017, this Greenfin-labelled ETF has seen its assets rise in synch with the remarkable growth of the underlying green bond market.
Most of Lyxor ETF's Green Bonds proceeds are used for projects aimed at combating climate change (83%), with the main investments comprising Energy, Green Buildings, and Clean Transportation.
According to the Climate Bonds Initiative, the green bond market reached a new record in Q3 2020, with issuance peaking at USD 73 Bn, the highest volume in any third quarter period since market inception in 2007 and the second highest amount on record in any single quarter. Cumulative issuance volume since inception reached USD 954 Bn and is expected to breach the USD 1 Trn milestone in Q4. Reflecting the increasing expansion of this market, the green bonds tracked by the underlying index designed by Solactive have quadrupled to 440, making this a highly diversified fund.