The iShares Global Aggregate Bond UCITS ETF tracks the Bloomberg Barclays Global Aggregate Index, which measures global investment grade debt from 24 local currency markets and according to BlackRock is one of the most widely followed fixed income indices.
The index provides exposure to treasuries, government-related, corporate and securitised fixed-rate bonds from both developed and emerging market companies.
The ETF physically replicates the index, which means it holds the underlying bonds within, and carries a total expense ratio (TER) of 0.1%. It has launched with currency-hedged share classes, including dollar, sterling and euro.
“Investors are increasingly diversifying their bond allocation to protect their portfolios from potential sudden market moves,” said Brett Olson, head of iShares fixed Income EMEA. “This ETF provides access to broad fixed income exposure meaning investors can avoid the time and resource-consuming task of picking out individual bonds.
“As the broader fixed income market continues to evolve, investors are increasingly seeking the diversification and flexibility that ETFs can offer, and using them alongside traditional security selection. Our 84-strong Ucits bond ETF range provides investors with fixed income building blocks that can act as ballast against equity market risk, while pursuing a consistent income.”
