BlackRock Reshapes $1bn High-Yield ETF Pair After Pension Fund ESG Shift

BlackRock is overhauling the $582m iShares € High Yield Corp Bond ESG Paris-Aligned Climate UCITS ETF (HYPE) and $423m iShares $ High Yield Corp Bond ESG Paris-Aligned Climate UCITS ETF (HYDP) after their majority investor, a Nordic pension fund, revised its sustainability targets. From 30 October, both will switch to Bloomberg MSCI HY Corporate Bond Select indices, dropping Paris-Aligned Benchmark status while remaining SFDR Article 8. The new methodology removes exclusions covering tobacco, civilian firearms, conventional weapons and certain fossil fuels, giving the roughly $1bn ETF pair broader investment flexibility.