##  [# iShares Launches ESG Corporate Bond ETF](/sections/daily-etf-watch/ishares-launches-esg-corporate-bond-etf) 

 

# iShares Launches ESG Corporate Bond ETF

 

 

The ETF juggernaut’s latest launch is for an ESG version of 'LQD.'



 

 

 

 

 [![DanMika200x200.jpg](/sites/default/files/styles/author_image_icon/public/2023-02/DanMika200x200.jpg?itok=W3yFiWn- "DanMika200x200.jpg")](/contributors/dan-mika) 

[By Dan Mika](/contributors/dan-mika)

 Nov 10, 2021

 Edited by: Dan Mika

 

 

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iShares’ latest offering is an ESG take on the ETF with the largest outflows from any U.S.-listed ETF so far this year.

The [**iShares ESG Advanced Investment Grade Corporate Bond ETF (ELQD)**](https://www.sec.gov/ix?doc=/Archives/edgar/data/1100663/000119312521315709/d207830d485bpos.htm) debuted on the NYSE Arca on Wednesday with a 0.18% expense ratio.

ELQD follows the same index as the [**iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD)**](https://www.etf.com/LQD), but with ESG screens to exclude companies that produce firearms, alcohol, tobacco, genetically modified organisms, palm oil and other controversial products.

Companies that also fall short of a BB rating on MSCI’s ESG ratings are also eliminated. Approximately 18% of companies rated by MSCI are below that threshold.

ELQD’s debut comes at a particularly difficult time for its older sibling. LQD gained more than $17 billion from the beginning of March 2020 to the end of the year, as the Federal Reserve’s $120 billion per month bond-buying program propped up the corporate credit sector.

But the fund’s fortunes have reversed, as dual threats of high inflation and the Fed’s announced taper of that bond-buying program calmed the sector’s animal spirits.

As of Monday, LQD has lost $14.86 billion in assets year-to-date, the most from any ETF on the U.S. exchanges, according to Bloomberg data. That figure amounts to just shy of 38% of its assets under management.

![](/sites/default/files/images/900px_elqd.png)

*Chart courtesy of FactSet*

A BlackRock spokesperson said ELQD’s launch is part of the firm’s long-term plans to offer sustainable versions of core ETF offerings as laid out in CEO Larry Fink’s [2020 letter](https://www.blackrock.com/us/individual/blackrock-client-letter) to clients.

The firm also launched an [ESG version](https://www.etf.com/sections/daily-etf-watch/ishares-debuts-esg-min-vol-etf?nopaging=1) of its [**iShares MSCI USA Min Vol Factor ETF (USMV)**](https://www.etf.com/USMV) last week, despite that fund having nearly $7.9 billion in outflows year-to-date.

*Contact Dan Mika at* [***dan.mika@etf.com***](mailto:dmika@etf.com)*, and follow him on* [***Twitter***](https://twitter.com/DanMikaTweets)



 

 

 [ Dan Mika ](/contributors/dan-mika) 

 

 

  Dan Mika is a reporter for etf.com. He has previously covered business for the Ames Tribune and Cedar Rapids Gazette in Iowa, and BizWest Media in…   [View Bio](/contributors/dan-mika)

 



 

 


 Related Topics  [Fixed Income](http://www.etf.com/topics/fixed-income) 

 [ESG](http://www.etf.com/topics/esg) 

 [Socially Responsible](http://www.etf.com/topics/socially-responsible) 

 [Blackrock](http://www.etf.com/topics/blackrock) 

 [Bond](http://www.etf.com/topics/bond)