BNY Mellon Investment Management has launched an actively managed exchange-traded fund focusing on investments in corporate debt issuers with the best environmental, social and governance (ESG) qualities.

The BNY Mellon Responsible Horizons Corporate Bond ETF, which is listed on NYSE Arca exchange, is sub-advised by Insight North America, a subsidiary of Insight Investment, a BNY Mellon investment firm, with US$1.2 trillion under management and expertise in fixed income and risk management.

The ETF seeks a total return consisting of capital appreciation and income while focusing on corporate debt securities issued by companies that demonstrate attractive investment attributes and business practices, based on Insight's proprietary ESG rating methodology, Prime.

The fund is managed by Erin Spalsbury and Jonathan Earle, who are both members of Insight's US$316.3 billion fixed-income group. It seeks to emphasize what Insight thinks to be the best, and avoid the worst, performers on ESG issues, and to carefully consider the approach taken to investments in environmentally sensitive industries. Insight believes that ESG risks may affect investment value and as such, need to be analyzed, mitigated and appropriately priced.

The BNY Mellon Responsible Horizons Corporate Bond ETF is the sixth actively managed and fourth dedicated sustainable solution in BNY Mellon Investment Management's ETF range, which offers investors the specialist capabilities of its investment firms delivered through a suite of actively managed and index ETF solutions.

Andy Provencher, head of North American distribution at BNY Mellon Investment Management, says: "This is an exciting addition to our growing ETF range as investors and advisors are increasingly looking for outcome-oriented strategies in more versatile investment vehicles. By leveraging Insight's fixed-income and responsible investment experience, we're able to provide our clients with a sustainable investment solution through an actively managed ETF vehicle. In partnering with Insight, a manager that takes ESG issues into account as an integral part of its credit analysis and investment process, we aim to achieve this goal."