DWS’s Xtrackers EUR Corporate Bond UCITS exchange traded fund (ETF) has broken the EUR1 billion in assets under management threshold, marking a major milestone for the product.
The direct, physical replication ETF provides exposure to an index of over 2,500 EUR-denominated investment-grade corporate bonds – exposure that has become much in demand as investors search for yield and more fixed income trading and investment is done via ETFs.
“The Passive index investing and sales teams have worked hard to make this product a success, and the flows it has attracted demonstrates the fund’s high tracking quality and access efficiency within its product segment,” says Simon Klein, Head of Passive Sales, Europe & Asia Pacific.
DWS has substantially expanded its fixed income Xtrackers range in recent years to meet new demand for fixed income ETFs. Establishing substantial assets in an ETF such as one providing exposure to the EUR-denominated corporate bond market is important as liquidity tends to attract more liquidity in the fixed income space.
“Investors considering the product and seeing that it has over EUR 1 billion in assets and is actively traded will be more likely to go ahead and make their investment, so we expect the ETF to attract even more flows,” adds Klein.