New iShares ETFs on Xetra: Worldwide investment in government and corporate bonds with hedging against currency fluctuations
New iShares ETFs on Xetra: Worldwide investment in government and corporate bonds with hedging against currency fluctuations
Three new iShares Exchange Traded Funds have been available for trading on Xetra and Börse Frankfurt since Tuesday.
The three bond ETFs offer a broadly diversified investment in corporate or government bonds, either from emerging and/or industrialised countries and with investment grade or as high-yield exposure.
The iShares J.P. Morgan $ EM Bond UCITS ETF EUR Hedged (Acc) offers an investment in emerging market government and quasi government bonds denominated in US dollars. The bonds have a fixed interest rate and a maturity of at least two years with a minimum outstanding amount of 1 billion US dollars. Dividends are reinvested.
The iShares Global Corp Bond UCITS ETF EUR Hedged (Dis) allows investors to participate in bonds issued by companies from emerging and developed countries worldwide that have an investment grade rating. The bonds have a maturity of at least one year and a fixed coupon.
The iShares Global High Yield Corp Bond UCITS ETF EUR Hedged (Dis) provides access to a high-yield exposure that reflects the performance of the globally developed market for liquid corporate bonds with a rating below investment grade status. Bonds in the index have a maximum original maturity of 15 years, bonds newly included in the index have a minimum maturity of 1.5 years. The index currently includes corporate bonds denominated in US dollars, euros, pounds sterling and Canadian dollars.
All three ETF products use a hedging strategy to minimize the exchange rate risk between the base currency of the index components and the euro.
Name | Asset class | ISIN | Ongoing charges | Distribution policy | Reference index |
iShares J.P. Morgan $ EM Bond UCITS ETF EUR Hedged (Acc) | Bond ETF | IE00BJ5JPH63 | 0.50 per cent | Accumulating | J.P. Morgan EMBI Global Core Index |
iShares Global Corp Bond UCITS ETF EUR Hedged (Dis) | Bond ETF | IE00BJSFQW37 | 0.25 per cent | Distributing | Bloomberg Barclays Global Aggregate Corporate Bond Index |
iShares Global High Yield Corp Bond UCITS ETF EUR Hedged (Dis) | Bond ETF | IE00BJSFR200 | 0.55 per cent | Distributing | Markit iBoxx Global Developed Markets Liquid High Yield Capped Index |
The product range in Deutsche Börse's XTF segment currently comprises a total of 1,428 ETFs. With this selection and an average monthly trading volume of around 12 billion euros, Xetra is the leading trading platform for ETFs in Europe.