Bringing you live news and features since 2006 

Announcement

BlackRock adds two long-dated sovereign bond ETFs to fixed income range

RELATED TOPICS​

BlackRock has expanded its range of over 80 fixed income ETFs with two funds that purchase long-dated sovereign bonds with maturities of 15 years or more. 

The funds build out iShares’ suite of over 35 government bond funds and allow investors to be more precise with their sovereign exposure by targeting specific durations.
 
The iShares $ Treasury Bond 20+ Yr UCITS ETF invests in fixed rate US Dollar denominated bonds that are issued by the US Treasury and have an outstanding maturity of at least 20 years. It becomes one of the longest duration US treasury ETFs in iShares’ European range. The fund has a total expense ratio of 0.20%.
 
The iShares Euro Government Bond 20yr Target Duration UCITS ETF purchases bonds rated AA- or better that have been issued by a central government of members of the Eurozone, and are denominated in euros or in a pre-euro currency. It aims to achieve a constant duration of approximately 20 years and a cap is applied so that no single bond accounts for more than 30%. The fund has a total expense ratio of 0.15%.
 
Both ETFs are physically backed and purchase the underlying bonds.
 
Brett Olson, Head of iShares Fixed Income EMEA for BlackRock, says: “One of the dominant trends of the last five years has been investors diversifying their fixed income allocations. Our clients are looking for ways to express specific views on countries, asset classes and duration risk amongst other features. We’ve expanded our range as a result, and today’s funds provide an additional way to add long-dated Euro and Treasury bonds to a portfolio, something that liability-driven investors such as DB plan managers may find particularly attractive.
 
“Fixed income ETFs offer access to a diversified range of bonds in a single, cost-efficient trade and are one of the industry’s major growth areas. They attracted global net new flows of $84.5bn* in 2014, a new record, and we expect this growth will continue in 2015.”
 

Latest News

BlackRock's iShares, an undisputed leader among European ETF issuers, pushed further ahead in Q1 with EUR173 billion in trades, triple..
European ETFs raised USD47.8 billion in Q1, a 15 per cent increase compared to the same period in 2023, according..
LSEG Lipper’s March report finds that globally equity ETFs (+EUR113.2 billion) enjoyed the highest estimated net inflows for the month,..
Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..

Related Articles

etf active trading
Latest Morningstar data shows actively managed ETFs’ share of the US ETF market rose to 8.5 per cent at the...
Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
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...
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