Bringing you live news and features since 2006 

DeAWM launches shorter maturity European high-yield corporate bond ETF


Deutsche Asset & Wealth Management (DeAWM) has listed a suite of three euro-denominated high-yield corporate bond ETFs, including the world’s first ETF providing exposure to the shorter maturity segment of the market.

The db x-trackers II iBoxx EUR High Yield Bond 1-3 UCITS ETF provides exposure to 97 liquid fixed and floating rate sub-investment grade euro-denominated corporate bonds in the one-to-three-year maturity bucket1. The ETF is listed on the Deutsche Börse and has an all-in fee of 0.35% per annum.
Arne Noack, Head of Exchange Traded Product Development, EMEA, says: “In light of the continued strong demand for high-yield bond ETFs, we have scanned the range of products available in the market and identified certain gaps where we see an opportunity to serve investors. We feel these new products are important additions to the euro high-yield ETF market.”
The yield on the ETF’s underlying index, the Markit iBoxx Liquid EUR High Yield 1-3 Index, stands at 3.96% (as at 07/01/2015).
The other two new launches, also on the Deutsche Börse,  provide exposure to euro-denominated high-yield corporate debt encompassing the full yield curve – over 400 securities1 – and daily rebalanced inverse (or short) exposure on the same index (see table below). The yield on the former’s underlying index, the Markit iBoxx EUR Liquid High Yield  Index, stands at 4.31% (as at 07/01/2015). The short daily ETF is specifically aimed at professional investors and provides a tool for tactical inverse positioning. “In launching a product  linked to the Markit iBoxx EUR Liquid High Yield  Index our intention is to bring to market the most competitively priced ETF tracking the overall liquid universe of the euro-denominated high-yield bond market,” adds Noack.
The ongoing low interest rate environment has stimulated interest from investors in higher yielding fixed income exposures, while demand for bond ETFs continues to grow. Assets under management in bond ETFs grew by 41 per cent in 20142.

Latest News

The August data from LSEG Lipper shows that the global ETF industry held USD10,547.4 billion in assets under management on..
HANetf has announced that their European Green Deal UCITS ETF (ticker: EUGD) has reached USD52 million (EUR49.9 million) in assets..
Legal & General Investment Management (LGIM) has announced the launch of the L&G Global Brands UCITS ETF. The firm writes..
Vienna Stock Exchange has launched three new thematic indices: CECE Reshoring, CECE Commodity Producers and CECE Clean Energy, writing that..

Related Articles

John Ciampaglia, Sprott Asset Management
Geo-political tensions and concerns about hitting clean energy targets have brought the focus back onto nuclear power in recent months,...
Nick King, Robeco
Europeam investment management giant Robeco has announced the appointment of Nick King as Head of Exchange Traded Funds (ETFs), in...
Kristof Gleich, Harbor Capital
Harbor Capital burst onto the ETF issuance world in 2021 and now has USD1.1 billion in assets in ETFs. But...
Europe’s thematic ETF provider, Rize ETF, has been acquired by ARK Invest LLC, the parent of ARK Investment Management LLC,...
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