Deutsche Bank has expanded its corporate bond ETF offering with the launch of two new db x-trackers funds on Germany's Deutsche Boerse.
The listing makes db x-trackers the first provider in Europe to offer an ETF linked to the performance of corporate bonds issued by financial entities.
The two euro-dominated ETFs will track individual sub-sets of the iBoxx EUR Liquid Corporate 100 index. This benchmark represents the performance of up to 100 corporate bonds, taking into account rebalancing costs.
The db x-trackers II iBoxx € Liquid Corporate 100 Non-Financials Sub-Index Total Return ETF is linked to the performance of the parent index's 53 non-financial corporate bonds, while the Financials Sub-Index ETF follows the remaining 47 constituents.
Global head of db x-trackers Thorsten Michalik says that as well as giving investors the opportunity to target their corporate bond exposures, the funds provide access to liquid exposures traditionally regarded as difficult to enter.
The new non-financials ETF is linked to a sector where bonds tend not to have a high turnover rate while also generally trading in high denominations.
The iBoxx EUR Liquid Corporate 100 is dominated by European companies. The Financials Sub-Index ETF lists bonds from 12 countries, with UK-domiciled companies at the heaviest weighting and constituting 30% of the index.
The Non-Financials Sub-Index ETF has 11 countries in it, with the Netherlands at the largest weighting of 36%.
Relates to 136 million transaction reports
Ceremony will take place 13 November
300 organisations signed charter
Tough year for the sector