ishares unveils global high yield bond etf

The first European exchange-traded fund (ETF) providing exposure to global high-yield bonds has been launched by iShares.

ishares unveils global high yield bond etf


The iShares Global High Yield Bond ETF tracks the Markit iBoxx Global Developed Markets Liquid High Yield Capped Index to offer exposure to sub-investment grade bonds issued by corporates based in developed markets.

Complements the existing iShares Markit iBoxx Euro High Yield Bond and iShares Markit iBoxx $ High Yield Capped Bond ETFs, the product will own bonds that have been rated at BB+ or less by Standard & Poor’s, Fitch or Moody’s. 

The products, which has total expense ratio of 50 basis points, will physically own the constituent bonds and will be run using a sampling technique to give investors with liquid exposure to the performance of the underlying index.

Alex Claringbull, senior fixed income portfolio manager for BlackRock’s iShares fixed income range, said: “Many of our European clients are looking to diversify away from their local bond markets. This new iShares ETF offers global exposure in one low cost trade giving a diversification that is difficult to achieve elsewhere.

“Fixed income will remain a key focus for iShares in 2013 as we continue to cater to the evolving demands and needs of our clients.”


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