Bringing you live news and features since 2006 

Currency Cogs

iShares launches two currency-hedged funds for global bond investors


iShares, the exchange traded funds platform of BlackRock, has launched the iShares Global High Yield Corp Bond GBP Hedged UCITS ETF and the iShares Global Corporate Bond EUR Hedged UCITS ETF. 

These two currency-hedged fixed income funds, the first of their type from iShares, are a result of the continued development of the iShares fixed income range. Driven by investor appetite, the new funds aim to reduce the impact currency fluctuations can have on returns when investing in fixed income globally.
The two physically-replicating iShares funds, listed on the London Stock Exchange, allow investors to access global bond exposures whilst reducing the risk of currency fluctuations in a single trade.  When investing internationally, investors are exposed to two main risks: movement in the value of the underlying asset and fluctuation between their portfolio base currency and the currency in which assets are denominated. This currency exposure can introduce unintended risk into a portfolio especially during periods of increased currency volatility. Hedging currency exposure allows investors to separate and manage these risks effectively.
Stephen Cohen, head of investment strategy at iShares EMEA, says: “We’re seeing a long-term trend for investors to diversify their fixed income allocations globally whilst at the same time there’s also been heightened volatility in FX markets. These factors are creating demand for simple and effective currency hedged solutions and we’ve designed these new funds with this client need in mind.
“The funds are our first currency hedged bond ETFs in Europe and build on our existing range of European currency hedged equity ETFs. They enable investors to hedge the currency of their investment returns in a single transaction without having to monitor and maintain a separate currency hedge – ideal for those who do not have hedging capabilities in-house.”
The iShares Global High Yield Corp Bond GBP Hedged UCITS ETF has a total expense ratio of 0.55 per cent and the iShares Global Corporate Bond EUR Hedged UCITS ETF has a total expense ratio of 0.25 per cent. Both funds follow a static monthly hedging index methodology. 

Latest News

News came last night from the US that the SEC has approved CBOE’s proposal to list and trade VanEck’s spot..
Irish domiciled funds surpassed EUR4.3 trillion AuM (Assets under Management) at end-March 2024, a 15 per cent increase in net..
European white label ETF platform, HANetf, has announced its total assets under management (AUM) has now exceeded USD4.31 billion...
New research from European ETF provider Tabula Investment Management shows investors are expecting improvements in ESG from the gold mining..

Related Articles

Timothy Rotolo, Range Funds
In 2023, Timothy Rotolo launched his business, Range Fund Holdings, the parent company for Range Indices and Range ETFs, followed...
Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
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