RHCB Profile
The BNY Mellon Responsible Horizons Corporate Bond ETF aims to provide investors with exposure to a portfolio of corporate debt securities that meet stringent environmental, social, and governance (ESG) criteria. Under normal market conditions, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in corporate bonds that exhibit favorable investment attributes and adhere to high ESG standards. This focus on responsible investment practices reflects the fund's commitment to aligning financial performance with sustainable business practices.
The fund primarily targets fixed-income securities rated as investment grade at the time of purchase, or their unrated equivalents as determined by the fund’s sub-adviser. Investment grade securities are typically those rated BBB- or higher by major credit rating agencies, indicating a relatively lower risk of default compared to non-investment grade securities. The fund's emphasis on high-quality bonds aims to ensure a stable income stream while maintaining a lower level of credit risk.
In addition to its ESG-focused investment strategy, the fund employs a rigorous evaluation methodology to select corporate bonds from issuers that demonstrate strong business practices and sustainability initiatives. This involves assessing companies on various ESG factors, such as their environmental impact, social responsibility, and governance practices, to ensure they align with the fund's ethical and investment criteria.
The BNY Mellon Responsible Horizons Corporate Bond ETF offers a strategic approach to fixed-income investing by integrating ESG considerations into its investment process. This not only seeks to provide attractive financial returns but also promotes responsible corporate behavior and sustainable development. The fund's approach enables investors to support companies that are committed to positive environmental and social outcomes while benefiting from the stability and income potential of investment-grade corporate bonds.
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