Lyxor launches eurozone duration bonds ETF

Lyxor has announced the launch of a direct replication ETF that offers investors access to eurozone government bonds with a remaining maturity of over 25 years.

The Lyxor Ultra Long Duration Euro Govt FTSE MTS 25+Y Ucits ETF (DR) C-EUR has been listed on Euronext Paris, offering exposure to the FTSE MTS Eurozone Government Bond IG 25Y+ Index.

The FTSE MTS Eurozone Government Bond IG 25Y+ Index is composed of securities with maturities of more than 25 years. Those securities are issued by the governments of Eurozone member states, with investment grade credit rating and with a minimum outstanding size of €2bn.

The firm explained “long duration investment grade government bonds tend to represent a source of higher yield compared to equivalent issuances with a lower duration, without exposing investors to the higher credit risk generally associated to issuers with a lower credit rating.”

Lyxor currently manages €5bn in Euro Govies ETFs.