First Asia ex-Japan USD corporate bond ETF from db X-trackers

Deutsche AM’s db X-trackers ETF platform has launched what it claims to be the world’s first exchange traded fund offering exposure to the Asia ex-Japan dollar corporate bond market.

The db X-trackers II iBoxx USD Liquid Asia Ex-Japan Corporate Bond Ucits ETF (DR) is listing on both Deutsche Boerse and the London Stock Exchange.

Tracking an index of some 148 investment grade corporate bonds from nine countries, it applies a direct physical replication strategy.

The Asian dollar denominated investment grade corporate bond market saw issuance increased to $63bn in 2015, up from $21bn in 2010. The underlying index used focuses on bonds with over $750bn outstanding. Currently the index yields 3.1%, on average duratino of 5.03 years, and an average credit quality of A-.

As of 31 August, Chinese corporate bonds represented the highest weighting in the index, just more than 50%. Corporate bonds from Hong Kong and India both have weightings of more than 10%. Other countries represented in the index are Malaysia, Indonesia, Singapore, Thailand and South Korea.


Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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