iShares rolls out four new income-focused ETFs

Apr 4th, 2012 | By | Category: Fixed Income

BlackRock has announced the launch of four new income-focused iShares ETFs listed on the BATS Exchange.

iShares rolls out four new income-focused ETFs

Darek Wojnar, Head of US iShares Product Development at BlackRock, said: "As investors have broadened their search for new income sources globally, high yield has emerged as one of the market's more significant opportunities."

The new funds include three “first to market” products designed to offer exposure to high yield securities across the global developed and emerging markets.

The fourth new fund is an “ETF of iShares ETFs” that seeks to provide single-trade access to a diversified set of income sources.

The four new funds are:

iShares Emerging Markets High Yield Bond ETF (EMHY)

The iShares Emerging Markets High Yield Bond ETF provides access to high yield bonds denominated in USD and includes a 65% allocation to sovereign bonds and 35% to corporate issues. The new fund is designed to track the Morningstar Emerging Markets High Yield Bond Index, a broad investable universe. TER: 0.65%.

iShares Global ex USD High Yield Corporate Bond ETF (HYXU)

The iShares Global ex USD High Yield Corporate Bond ETF offers access to developed international non-US denominated high yield bonds, which are denominated in euros, pound sterling and Canadian dollars. The fund’s highest country allocations are France (15%), the United Kingdom (15%), Germany (14%), and the Netherlands (12%). The fund is designed to track the Markit iBoxx Global Developed Markets ex-US High Yield Index. TER: 0.40%.

iShares Global High Yield Corporate Bond ETF (GHYG)

The iShares Global High Yield Corporate Bond ETF provides complete global (US and developed international) high yield in a “one ticket” trade, via developed international corporate bonds denominated in the USD, euros, pound sterling, and the Canadian dollar. Based on the country of the issuer, the fund is allocated 69% to the US, 16% to Europe, 4% to the United Kingdom, and 3% to Canada. The fund is designed to track the Markit iBoxx Global Developed Markets High Yield Index. TER: 0.40%.

iShares Morningstar Multi-Asset Income Index ETF (IYLD)

The fourth new fund, the iShares Morningstar Multi-Asset Income Index ETF, is an ETF of iShares ETFs that delivers income with a diversified, managed approach. The fund is allocated 60% to fixed income, 20% to equity and 20% to alternative income sources. The new fund is designed to track the Morningstar Multi-Asset High Income Index. TER: 0.60%.

Speaking at the launch, Darek Wojnar, Head of US iShares Product Development and Management at BlackRock, said: “Market conditions – in particular, an unprecedented low rate environment – continue to make it vital for investors of all kinds to identify new sources of yield and income.

“As investors have broadened their search for new income sources globally, high yield has emerged as one of the market’s more significant opportunities. At the same time, high yield is an asset class where investors can particularly benefit from well diversified approach.

“Our three new high yield funds – in combination with our existing iShares iBoxx $ High Yield Corporate Bond ETF – represent a complete global, high yield tool kit, flexible enough to serve the widest possible range of investor needs and interests across this asset class.”

Regarding the fourth new fund, Wojnar said: “Investors are increasingly looking for diversification in income streams and asset classes. The new iShares Morningstar Multi-Asset Income Index ETF can help investors mitigate key risks in any one particular asset class.”

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