Four new bond index exchange-traded funds issued by iShares have launched in Deutsche Börse’s XTF segment.
The iShares $ Short Duration Corporate Bond UCITS ETF enables investors to participate in the performance of highly liquid, investment grade corporate bonds denominated in US dollars. The bonds contained in the index have a term of up to five years.
The iShares $ Short Duration High Yield Corporate Bond UCITS ETF enables investors to participate in the performance of high-yield corporate bonds denominated in US dollars. High-yield bonds have a sub-investment grade rating. These bonds have a higher risk of default, but therefore pay higher yields. Only the largest and most liquid bonds with a term of up to five years are taken into account in the reference index. The weighting of an issuer in the reference index is restricted to three per cent.
Two iShares Ultrashort Bond ETFs – the iShares $ Ultrashort Bond UCITS ETF and the iShares Euro Ultrashort Bond UCITS ETF – enable investors to invest in short-term, investment grade corporate bonds denominated in euros or US dollars. The respective reference index comprises fixed-rate bonds with a term of up to one year as well as floating-rate bonds with residual maturity of up to three years. The weighting of single stocks within the index is based on market value and reviewed each month. The weighting of an issuer is restricted to three per cent.
