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.”