iShares beefs up its fixed income offering

ETF giant iShares announced the launch of two new US fixed income ETFs on Wednesday, with exposure to both sub-investment and investment grade corporate bonds and Treasuries.

iShares beefs up its fixed income offering


The iShares Markit iBoxx $ High Yield Capped Bond fund is domiciled in Dublin and listed on the London Stock Exchange.
It is a physically-based ETF which tracks the performance of the Markit iBoxx USD Liquid High Yield Capped index.

This index comprises over 400 of the world’s most liquid dollar-denominated sub-investment grade corporate bonds.
Constituents are capped with a maximum individual issuer weighting off 3% to ensure exposure is diversified across the US high yield arena.

The second fund is the iShares Barclays Capital US Aggregate Bond fund, which is listed on the LSE and provides broad based exposure to dollar denominated investment grade fixed income.

It is also physically-based and invests directly in underlying government, government-related, securitised and corporate bonds.
iShares said this fund is intended to complement the iShares Barclays Capital Euro Aggregate Bond ETF.

Both funds are Ucits compliant.

Axel Lomholt, head of ETF products, iShares EMEA, said: "We’ve launched these ETFs in repsonse to demand for liquid and transparent fixed income exposures that are easy to buy and trade. Investors this year have also shown a clear preference for physically-based products and for investing through regulated fund vehicles.

"Our existing US domiciled ETF based on the Markit iBoxx $ High Yield Corporate Bond index has gathered over $8bn in assets since its launch in 2007 and we anticipate this type of exposure will prove similarly popular among European investors."



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