New bond ETFs from iShares: access to high-yield and government bonds as well as Chinese companies
New bond ETFs from iShares: access to high-yield and government bonds as well as Chinese companies
Three new exchange-traded funds issued by iShares have been tradable on Xetra and via Börse Frankfurt since Friday.
The iShares Broad $ High Yield Corp Bond UCITS ETF USD (Dist) allows investors to invest in the performance of US dollar-denominated corporate fixed income bonds below investment grade. To be included in the reference index, bonds must have a remaining maturity of at least 18 months and a market capitalisation of at least US$250 million. The weighting is based on market capitalisation, whereby a single issuer may be represented with a maximum of 3 per cent.
The iShares $ TIPS 0-5 UCITS ETF EUR Hedged (Dist) provides investors with exposure to US Treasury inflation-linked bonds (US TIPS). The bonds are denominated in US dollars and must have an investment grade rating. They must also have a remaining maturity of zero to five years and a minimum outstanding amount of US$500 million.
The iShares MSCI China Tech UCITS ETF USD (Acc) tracks the performance of large and mid-sized Chinese companies engaged in businesses including internet and direct marketing, retail, interactive media and services, and education services. The weighting of the five largest issuers is limited to 8 per cent and that of the following to 5 per cent. Excluded are companies involved in weapons, thermal coal, tobacco, or unconventional oil sands, or that violate the principles of the UN Global Compact.
Name | Asset class | ISIN | Ongoing charges | Distribution policy | Benchmark index |
iShares Broad $ High Yield Corp Bond UCITS ETF USD (Dist) | Bond ETF | 0.25 per cent | distributing | ICE BofAML US High Yield Constrained Index | |
iShares $ TIPS 0-5 UCITS ETF EUR Hedged (Dist) | Bond ETF | 0.12 per cent | distributing | ICE U.S. Treasury Inflation Linked Bond Index 0-5 Years | |
iShares MSCI China Tech UCITS ETF USD (Acc) | Equity ETF | 0.45 per cent | accumulating | MSCI China Technology Sub-Industries ESG Screened Select Capped Index |
The product offering in Deutsche Börse's XTF segment currently comprises a total of 1,830 ETFs. With this selection and an average monthly trading volume of around €17 billion, Xetra is the leading trading venue for ETFs in Europe.