ProShares launches first US-listed ETF focused on German sovereign debt

Jan 27th, 2012 | By | Category: Fixed Income

Major ETF provider ProShares has launched the ProShares German Sovereign/Sub-Sovereign ETF, the first US-listed ETF focused on sovereign and sub-sovereign debt from Germany.

ProShares launches first US-listed ETF focused on German sovereign debt

ProShares has launched the first US-listed ETF focused on German sovereign and sub-sovereign debt.

The ETF is listed on NYSE Arca and trades with the ticker code GGOV.

GGOV seeks to match the performance of Markit iBoxx EUR Germany Sovereign & Sub-Sovereign Liquid Index, a market-value weighted cash bond index designed to track the performance of German sovereign and sub-sovereign debt, before fees and expenses.

“Many investors have fixed-income portfolios concentrated in high credit quality US bonds,” said Michael L. Sapir, Chairman and CEO of ProShare Advisors. “This ETF can help these investors manage risk by adding diversification through international bond exposure.”

GGOV’s benchmark, the Markit iBoxx EUR Germany Sovereign & Sub-Sovereign Liquid Index, tracks the returns of euro-denominated general obligation bonds issued by the Federal Republic of Germany, state governments of Germany, government agencies or institutions, and entities that are owned or guaranteed by German federal or state governments.

Germany has the world’s third-largest public debt market and is widely recognised for its fiscal strength.

The constituents of the benchmark include only investment grade debt, the majority of which currently has the highest rating from Standard & Poor’s, Moody’s and Fitch, with none currently rated lower than AA.

Armins Rusis, Managing Director and Global Head of Data, Indices and Research at Markit, said: “With the performance of European economies diverging, investors want to be selective.  We are pleased to have designed this index at a time when there is growing interest in targeted exposure to European sovereign debt.”

ProShares is the US’s fourth biggest ETF issuer, with 129 funds and nearly $23 billion in assets. The company’s product lineup includes the largest range of geared – leveraged and inverse – ETFs.

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