Exchange traded fund provider iShares has launched four fixed income ETFs on the London Stock Exchange in response to demand from investors for a greater range of exposure to bond marke
Exchange traded fund provider iShares has launched four fixed income ETFs on the London Stock Exchange in response to demand from investors for a greater range of exposure to bond markets.
The products will provide access to the investment grade debt universe, as well as tailored exposure to corporate bonds, G7 bonds and to the shortest-dated European government instruments.
The iShares Barclays Euro Aggregate Bond provides exposure to a basket of Euro denominated investment grade bonds, including treasury bonds, securitised bonds and corporate bonds. It is designed to track the Barclays Capital Euro Aggregate bond index.
The iShares Barclays Euro Corporate Bond provides exposure to a diversified basket of Euro-denominated investment grade corporate bonds. Inclusion in the fund is based on the currency of the issue and not the domicile of the issuer. In line with this, the fund contains Euro-denominated corporate bonds that have been issued from all over the world. It is designed to track the Barclays Capital Euro Corporate bond index.
The iShares Barclays Euro Treasury Bond 0-1 provides exposure to a diversified basket of Euro-denominated government bond with maturities ranging from zero to 12 months. This offers diversified exposure to high ratings and short duration bonds. It is designed to track the Barclays Capital Euro Treasury 0-12 months bond index.
The iShares Citigroup Global Government Bond provides broad international exposure to around 500 government bonds issued by the G7 countries. It is designed to track the Citigroup G7 World Government bond index.
Alex Claringbull, senior fixed income portfolio manager at iShares, says: “Following the market events of 2008, fixed income has grabbed the attention of investors like never before. At this time of intense interest and strong inflows, iShares is delighted to be able to offer the market an enlarged suite of bond funds, unique in its breadth and depth, which speaks to a range of investors and their needs.”
