Structured Invest SA, a wholly owned subsidiary of UniCredit Bank AG, has launched its first ETF on Deutsche Borse’s Xetra covering European convertible bonds. UniCredit subsidiary HVB sold its Indexchange ETF unit to Barclays in 2007, so this new product marks UniCredit's return to the ETF market.
The UC Thomson Reuters Balanced European Convertible Bond UCITS ETF enables investors to participate for the first time in the performance of the European convertible bond market. The ETF provides diversified investment opportunities in large, liquid convertible bonds from European issuers in various sectors.
The reference index comprises highly convex bonds only. Structured Invest explains that high convexity is generally a desirable feature, as it means that the price of a bond will fall less sharply when interest rates rise and will increase more when rates fall compared with a lower convexity bond.
The product offering in Deutsche Börse’s XTF segment currently comprises a total of 1,065 exchange traded funds with an average monthly trading volume of around EUR13 billion.