European ETF provider Tabula Investment Management has launched an SEK-Hedged share class of its Asia ex-Japan High Yield Corporate USD Bond ESG UCITS ETF (Ticker: TAHSx).
The firm writes that this comes in response to investor appetite in the region. The ETF, which now has a 13-month track record and over USD220 million in assets, offers a gross yield of over 20 per cent and a duration of just two and a half years.
The new listing provides investors exposure to USD-denominated Asian high yield corporate bonds vand is classified as Article 8 under the EU Sustainable Finance Disclosure Regulation (SFDR).
“The opportunities offered by Asia high yield to investors are clear, but there have been some recent challenges in the Chinese real estate market,” says Tabula Chief Commercial Officer, Stefan Garcia.
“However, we have seen consistent inflows into our Asia ex-Japan High Yield bond ETF, showing investors are becoming increasingly confident about this market. This is being fuelled by a growing package of economic stimulus in the country and a loosening of Chinese fiscal policies. Our SEK-Hedged listing, launched in response to requests from investors, is further evidence of demand for products with ESG integration that deliver yield.”
The new SEK-Hedged share class is listed on Cboe and joins USD, GBP-Hedged and EUR-Hedged listings across multiple European exchanges.