New Invesco ETF launched on Xetra: US dollar-denominated CoCo bonds from companies in industrialised countries

Release date: 29 Jun 2018 | Deutsche Börse Cash Market

New Invesco ETF launched on Xetra: US dollar-denominated CoCo bonds from companies in industrialised countries

A new exchange traded fund issued by Invesco Asset Management is tradable on Xetra and Börse Frankfurt since Thursday.

The Invesco AT1 Capital Bond UCITS ETF EUR Hdg Dist enables investors to participate in the performance of contingent convertible bonds issued worldwide by banks from industrialised countries and denominated in US dollars.

Contingent convertible bonds are long-term subordinated bonds that obligatorily convert from debt into equity if a pre-specified trigger event occurs. They are therefore a type of hybrid bond with equity-like features.

In order to be admitted to the benchmark index, bonds must have a nominal value of at least US$ 750 million and the issuer an outstanding nominal volume of at least one billion in its national currency. If the benchmark index comprises at least 17 issuers, the weighting of the five largest issuers is capped at 8 per cent and that of the other issuers at 5 per cent.

 

Name

Asset class

ISIN

Ongoing charges

Distribution policy

Benchmark index

Invesco AT1 Capital Bond UCITS ETF EUR Hdg Dist

Bond ETF

IE00BFZPF439

0.39 per cent

distributing

iBoxx USD Contingent Convertible Liquid Developed Market AT1 (8/5% Issuer Cap)

 

 

Deutsche Börse’s XTF segment product range currently comprises a total of 1,291 ETFs. This selection, together with an average monthly trading volume of around €14 billion, makes Xetra Europe’s leading trading venue for ETFs.

 

Xetra® and XTF® are registered trademarks of Deutsche Börse AG.

 

Further information