Two new ETFs issued by Invesco are tradable via Xetra and Börse Frankfurt. The new bond index ETFs are designed to enable investors to participate in the performance of floating rate corporate bonds.
The reference index comprises investment grade bonds issued by industrial companies, utilities and financial institutions worldwide. The bonds must also have been issued within the last two and a half years, have an original term of at least two and a half years and a residual maturity of at least one month.
The Invesco Euro Floating Rate Note UCITS ETF EUR Dist invests in euro-denominated bonds with a minimum amount outstanding of EUR500 million.
The Invesco USD Floating Rate Note UCITS ETF EUR Hdg Dist invests in US dollar-denominated bonds with a minimum amount outstanding of USD500 million. This ETF uses a hedging strategy to minimise the exchange rate risk between the US dollar and the euro.
Both new ETFs have ongoing charges of 0.12 per cent.