Bringing you live news and features since 2006 

db X-trackers launches ETF with exposure to liquid sterling corporate bonds


Deutsche Bank’s exchange traded fund platform, db X-trackers, has launched an ETF that provides exposure to an index of liquid sterling denominated corporate bonds.

The db x-trackers II iBoxx GBP Liquid Corporate 100 Index ETF provides exposure to up to 100 sterling denominated corporate bonds that have been screened for liquidity.

To qualify for the index all eligible bonds must have a remaining time-to-maturity of at least two years and a minimum amount outstanding of GBP400m.

By using a corporate bond index weighted in favour of liquidity, replication of the index performance can be achieved efficiently and with more certainty than using an index that could have illiquid underlying components.

Using its swap-based replication method, Deutsche Bank is therefore able to deliver the exact returns of the index to the ETF.

“There has been strong demand for corporate debt exposure this year, so having this liquid, low cost access tool will be useful for investors,” says Manooj Mistry, head of db X-trackers for the UK.

“We’ve developed our sterling corporate bond ETF to provide investors with the exact returns of the index minus the fixed total expense ratio. This is a big advantage on traditional corporate bond ETFs, where the investor has to accept tracking difference risk, which can be substantial because of the potentially illiquid nature of the underlying.”

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by