New iSharesETFs with access to high yield corporate bonds launched on Xetra

Release date: 13 Apr 2018 | Deutsche Börse Cash Market

New iSharesETFs with access to high yield corporate bonds launched on Xetra

Two new exchange traded funds issued by iShares have been tradable on Xetra and Börse Frankfurt since Friday.

The iShares USD High Yield Corporate Bond UCITS ETF EUR Hedged (Dist) enables investors to access the most liquid, US dollar-denominated corporate bonds from companies in industrialised countries. The bonds must have a sub-investment grade rating as well as a minimum term of one and a half and a maximum of fifteen years to be included in the reference index. The reference index components are weighted according to their market capitalisation. This ETF unit class uses a hedging strategy to hedge the exchange rate risk between the US dollar and the euro.

The iShares Fallen Angels High Yield Corporate Bond UCITS ETF EUR Hedged (Dist) offers investors access to the performance of high-yield corporate bonds that have been downgraded to a sub-investment grade rating. The bonds can be fixed or floating rate and must have a minimum term of one year. The reference index components are weighted according to their market capitalisation and are issuer-capped at 3 percent. This ETF unit class uses a hedging strategy to hedge the exchange rate risk between the underlying portfolio currency and the euro.

Name: iShares USD High Yield Corporate Bond UCITS ETF EUR Hedged (Dist)
Asset class: bond index ETF
ISIN: IE00BF3N7102
Ongoing charges p.a.: 0.27 percent
Distribution policy: distributing
Reference index: Markit iBoxx USD Liquid High Yield Capped Index

Name: iShares Fallen Angels High Yield Corporate Bond UCITS ETF EUR Hedged (Dist)
Asset class: bond index ETF
ISIN: IE00BF3N7219
Ongoing charges p.a.: 0.55 percent
Distribution policy: distributing
Reference index: Bloomberg Barclays Global Corporate ex EM Fallen Angels 3 percent Issuer Capped Index

The product offering in Deutsche Börse's XTF segment currently comprises a total of 1,251 exchange traded funds. This selection, together with an average monthly trading volume of around €11 billion, makes Xetra Europe’s leading trading venue for ETFs.

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