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iShares launches world first short-dated sterling denominated corporate bond ETF


iShares has expanded its fixed income range with the launch of the iShares Markit iBoxx £ Corporate Bond 1-5. Listing on the London Stock Exchange (LSE), it is the first ETF to provide specific exposure to short-dated corporate bonds which are denominated in Sterling.

Physically backed in structure, the iShares Markit iBoxx £ Corporate Bond 1-5 aims to track the Markit iBoxx GBP Corporate 1-5 Index. It provides investors with cost-effective access to investment grade, sterling denominated corporate bonds with an expected remaining time to maturity of between one and five years. The fund is optimised, ensuring liquidity and efficiency of trading. As with all iShares ETFs, this product provides investors with full transparency into the underlying fund holdings and investors are able to take advantage of continuous pricing by visiting
Axel Lomholt (pictured), head of product development for iShares EMEA, says: “With UK interest rates likely to rise from their all time low this year, an increasing number of investors are looking to manage their exposure to interest rate risk. This ETF offers, in a single trade, targeted exposure to short-dated sterling denominated corporate bonds, which investors can use to lower the overall duration of their fixed income portfolio in a rising yield environment, as shorter maturity corporate bonds are generally less sensitive to changes in yields. It complements our existing iShares Markit iBoxx £ Corporate Bond ex-Financials and iShares Markit iBoxx £ Corporate Bond funds, and means we can offer investors a choice of exposures when they look at investing in sterling corporate bonds.
“The launch also marks the continued expansion of our European fixed income range, which has been in response to client demand from more nuanced and specific exposures to the asset class.  iShares currently offers 42 fixed income ETFs in Europe, many of which have been first to market, and all of which meet the highest standards of product robustness and liquidity.”

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