Deutsche launches corporate bond ETF

The fund tracks the iBoxx Eur Liquid Corporate 100 index, which comprises up to 100 corporate bonds denominated in euros. The banks says the market for ETFs linked to corporate bond indices is one of the largest within the fixed income ETF space, with more than €4.5bn in assets under management. However, as liquidity remains uncertain in the corporate bond market, many ETFs experience tracking error against the underlying index, or a low level of secondary market liquidity for the fund. The firm says this risk materialized during the crisis in 2008, causing the trading prices for a...