VCEB ETF

The theme of environmental, social and governance (ESG) continues to be an investment segment that is generating interest among investors. That's especially the case in the debt market as S&P Global is forecasting that issuance in green bonds could hit over $1 trillion by the end of this year.

The global transition to clean energy technologies should open opportunities for fixed income investors in bond funds that focus on the ESG theme. The ESG theme hit a zenith in the past few years.

The US is considering a green bond option to take advantage of the popular ESG trend. This reminds investors of choices like the Vanguard ESG US Corporate Bond ETF (VCEB) for those looking to combine ESG factors with returns.

It's been quite the start to 2024 when it comes to bond issuance in the public and private sectors. Record issuance is also hitting the sustainable bond market.

The start of 2024 has been marked by record issuance both in the public and private business sectors. In terms of the latter, green bonds are also hitting the market, as in the case of plastics maker Dow Inc.

With the prospect of rate cuts this year, companies are feeling emboldened to issue new debt. As such, fixed income investors have myriad opportunities to get exposure via corporate bond ETFs.

With interest rates at their highest levels in two decades and inflation still high enough that the possibility of further rate hikes isn't off the table, advisors and investors should be judicious when examining fixed income exchange traded funds. That's particularly true when it comes to corporate bond ETFs.

Unless corporations are able to pull off the ultimate escape artist trick, they won't be able to get away from higher interest rates, which could put corporate bonds in a precarious position. A MarketWatch report noted a particular Goldman Sachs analysis that addressed the $1.