Barclays Global Investors is to launch its first corporate bond focused exchange traded fund (E...
Barclays Global Investors is to launch its first corporate bond focused exchange traded fund (ETF) iShare in June.
A similar product, which tracks the iBoxx Liquid Corporates index, launches in Germany on the Deutsche Borse this week, trading in euros. A sterling-based share class will be launched and traded on the London Stock Exchange in June.
The new ETF gives investors access to liquid diversified basket of 40 investment grade bonds that constitute the iBoxx Liquid Corporates Index. iBoxx, a consortium of seven investment banks and the Deutsche Borse, is a provider of fixed income indices. The gross redemption yield on the German fund at launch is expected to be 4.44%.
Income will be distributed quarterly. The TER on the euro denominated iShare is capped at 0.20% and the same is likely of the sterling version. Lee Kranefuss, managing director of BGI, said the launch of the iBoxx iShare was the first of a planned family of fixed income ETFs to be offered by the group.
When launched in the UK, the iBoxx Liquid Corporates is to be aimed at institutional and individual investors.
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