XACT is the first market player to list two Swedish fixed income-based ETFs. XACT Obligation is based on a broad basket of Swedish bonds, while XACT Repo tracks the Riksbank’s repo rate.
"With these two new funds, we can now offer investors a broad range of ETFs with Nordic exposure to various asset classes." Now it will also be possible to create complex investment portfolios based solely on ETFs, with all the advantages of this type of investment in the form of flexibility and low cost," says Henrik Norén, Managing Director of XACT Fonder.
XACT Obligation tracks the Handelsbanken Sweden All Bond Tradable Index, currently based on 37 government, mortgage and municipal bonds with benchmark status.
XACT Repo tracks the trend of the Riksbank’s key rate, the repo rate.
Both ETFs are being listed today on Nasdaq OMX Stockholm. XACT already has 18 ETFs listed on the Stockholm stock exchange, focusing on traditional equity indexes and commodities.
"Equities, fixed income instruments and commodities in various configurations are the components of most investment strategies. For example, in Europe today, around 20 per cent of ETF capital is invested in fixed income instruments", says Henrik Norén. "Our fixed income ETFs now enable our customers to make short- and long-term fixed income investments for their portfolios efficiently at low cost."
The low asset management fees, XACT Obligation has an annual fee of 0.19 per cent and the fee for XACT Repo is 0.14 per cent, will benefit long-term strategic investments.