The iShares Barclays Euro Corporate Bond Financials Ucits ETF provides exposure to fixed rate, investment grade bonds that are denominated in euros and issued by European financial companies.
The fund tracks the Barclays Euro-Aggregate Financial Index by holding the physical bonds. Issue and issuer ratings by Moodys, Standards and Poors and Fitch Ratings are used to determine whether or not the fund has the necessary credentials to be included in the index.
The fund is the 17th in the corporate bond ETF range, which includes the iShares Barclays Euro Corporate Bond Interest Rate Hedged ETF and the iShares Barclays Euro Corporate Bond 1-5 ETF. The performance of the latter over six months is shown in the graph below.
In February, iShares unveiled a new ETF ‘toolkit’ for IFAs to help them understand how ETFs can enhance a portfolio.
The launch comes as a raft of new ETFs hit the market; in April First Trust launched their first product for the European market, while Pimco listed their Short Term High Yield Fund on the London Stock Exchange, and in sterling, for the first time in March.