Fixed Income

Deutsche expands ‘yield plus’ suite with USD corporate bond ETF

Mar 14th, 2018 | By
Deutsche adds USD corporate bond ETF to yield-plus suite

Deutsche Asset Management has added a new ‘yield plus’ corporate bond ETF to its product line-up with the launch of the Xtrackers iBoxx USD Corporate Bond Yield Plus UCITS ETF (XYLD) on the London Stock Exchange and Deutsche Börse. The fund tracks the Markit iBoxx USD Corporates 1-20 Yield Plus Index, providing exposure to higher yielding, mostly investment-grade, corporate bonds denominated in US dollars.

Ashburton lists global government bond ETF on JSE

Mar 13th, 2018 | By
Ashburton Global Government Bond ETF JSE

Ashburton Investments, the asset management arm of the FirstRand group, has launched the Ashburton World Government Bond ETF (ASHWGB SJ) on Johannesburg Stock Exchange. The ETF is the first to list on JSE to provide exposure to global government bonds.

High-yield bond ETFs attract record demand from short sellers

Mar 1st, 2018 | By
Sam Pierson IHS Markit

By Sam Pierson, analyst at IHS Markit.

Short demand for high-yield bond ETFs is at the highest level recorded, currently over $7bn in total. Demand remains elevated despite a rally off the lows, which recovered half of the year-to-date losses for the products.

Ossiam cross-lists smart beta corporate bond ETF on Deutsche Börse

Feb 28th, 2018 | By
Ossiam cross-lists smart beta corporate bond ETF on Deutsche Börse

Ossiam has cross-listed the Ossiam Solactive Moody’s Analytics IG EUR Select Credit ETF (OSXF GY) on Deutsche Börse. This new smart beta fixed income ETF, which debuted on Euronext Paris on 15 February 2018, invests in a portfolio of euro-denominated investment grade corporate bonds, seeking to maximise total return while maintaining a low credit risk profile.

VanEck: China bond appeal grows with possible index inclusion

Feb 22nd, 2018 | By
VanEck: China bond appeal grows with possible index inclusion

By Fran Rodilosso, head of fixed income ETF portfolio management at VanEck.

International bond investors will soon need to consider a greater role for Chinese debt in their portfolios as the country’s bonds are likely to enter emerging markets and global bond indices in the near to medium term.

Invesco cross-lists PIMCO euro short-term high yield ETF on SIX

Feb 22nd, 2018 | By
PowerShares cross-lists PIMCO eurozone high yield ETF on SIX

Invesco PowerShares has cross-listed the PIMCO Euro Short-Term High Yield Corporate Bond Index Source UCITS ETF (EUHA SW) on SIX Swiss Exchange. The fund, managed by bond specialists PIMCO, tracks the BofA Merrill Lynch 0-5 Year Euro Developed Markets High Yield 2% Constrained Index, comprising short-term, euro-denominated corporate bonds issued within the eurozone with a rating below investment grade.

JP Morgan’s fixed income ETFs go live on LSE

Feb 22nd, 2018 | By
JP Morgan launches fixed income ETFs in Europe

JP Morgan Asset Management (JPMAM) has now launched on the London Stock Exchange the three bond ETFs it unveiled last month, marking the formal introduction of the first JP Morgan-branded fixed income ETFs in Europe.

SSGA introduces currency-hedging for global aggregate bond ETF

Feb 21st, 2018 | By
SSGA rolls out currency-hedging for Bloomberg Barclays global aggregate bond ETF

State Street Global Advisors has introduced three currency-hedged share classes for the recently launched European-listed SPDR Barclays Global Aggregate UCITS ETF. The new share classes offer currency hedging relative to US dollars, pounds sterling, or euros.

MSCI: How easy is it to track a bond market index?

Feb 21st, 2018 | By
Andy Sparks, head of fixed income research strategies, MSCI

By Andy Sparks, head of fixed income research strategies, MSCI.

Many investors may have only a qualitative understanding of the ability of passive fund managers to track the returns of a fixed-income index. Our analysis uses tracking error to provide a quantitative measure of the ease – or difficulty – of consistently tracking an index. We find generally low to moderate tracking error across broad parts of the bond market. Our analysis also suggests that less liquid and higher volatility sectors (such as high yield) tend to have higher tracking error.

Invesco cross-lists three PowerShares fixed income ETFs on SIX

Feb 20th, 2018 | By
Invesco cross-lists three Powershares fixed income ETFs on SIX

Invesco has cross-listed three PowerShares fixed income ETFs onto SIX Swiss Exchange, each tracking Bloomberg Barclays indices. The ETFs offers exposure to US dollar-denominated corporate bonds, euro-denominated corporate bonds, and dollar-denominated emerging market sovereign bonds.