New iShares bond ETFs on Xetra: access to a broad range of currency-hedged USD bonds and mortgage-backed US securities

Release date: 23 Feb 2024 | Deutsche Börse Cash Market

New iShares bond ETFs on Xetra: access to a broad range of currency-hedged USD bonds and mortgage-backed US securities

Two new exchange traded funds from iShares have been tradable on Xetra and via the trading venue Börse Frankfurt since Friday.


The iShares US Mortgage Backed Securities UCITS ETF EUR Hedged offers investors access to the broadly diversified market for US mortgage-backed securities issued and guaranteed by government-sponsored companies such as Ginnie Mae, Fannie Mae, and Freddie Mac. The fixed-rate US securities with a pass-through structure have an investment grade rating and are collateralised by pools of mortgages from US homeowners. Through the pass-through structure, security holders directly receive the principal plus interest from the pools of homeowner mortgages. All securities must have a weighted average remaining maturity of at least one year.

The iShares US Aggregate Bond UCITS ETF EUR Hedged provides access to the global market for investment grade US dollar denominated bonds. The fixed-interest bonds are government bonds, government-related bonds, corporate bonds, and mortgage-backed bonds. The minimum residual term is one year.

Both instruments use futures contracts to hedge currency fluctuations against the US dollar.

Name

Asset class

ISIN

Ongoing charges

Distribution policy

Reference index

iShares US Mortgage Backed Securities UCITS ETF EUR Hedged (dist)

Fixed Income ETF

IE000EEJLWG1

0.30 per cent

distributing

Bloomberg US Mortgage Backed Securities Index

iShares US Aggregate Bond UCITS ETF EUR Hedged (dist)

Fixed Income ETF

IE00093SKUY4

0.30 per cent

distributing

Bloomberg US Aggregate Bond Index

The product offering in Deutsche Börse's XTF segment currently comprises a total of 2,143 ETFs. With this selection and an average monthly trading volume of more than €14 billion, Xetra is the leading trading venue for ETFs in Europe.

Further information