iShares, BlackRock's Exchange traded funds platform, has launched eight funds that provide targeted exposure to the sovereign debt of eurozone countries.
iShares, BlackRock’s Exchange traded funds platform, has launched eight funds that provide targeted exposure to the sovereign debt of eurozone countries.
The launch represents an expansion of iShares’ fixed income range driven by growing interest in fixed income ETFs, to satisfy demand for more granular exposures within the asset class.
The eight funds to launch on the London Stock Exchange today are: iShares Barclays Austria Treasury Bond ETF; iShares Barclays Belgium Treasury Bond ETF; iShares Barclays Finland Treasury Bond ETF; iShares Barclays France Treasury Bond ETF; iShares Barclays Germany Treasury Bond ETF; iShares Barclays Italy Treasury Bond ETF; iShares Barclays Netherlands Treasury Bond ETF and iShares Barclays Spain Treasury Bond ETF.
The ETFs invest in the fixed rate debt issued by the government of the specified country, denominated in local currency, with the bonds having at least one year until maturity.
They are physically backed funds and each has a total expense ratio of 0.20%.
According to the company, the ETFs providing exposure to sovereign debt from Austria, Belgium, Finland, the Netherlands and Spain are the first of their kind in the world.
“Investors are allocating to fixed income in a more granular way than ever before. This new series of single country Eurozone debt exposures will allow them to invest and express their views in a more precise fashion. The ETFs can be used to overweight or underweight bonds in fixed income portfolios on a country basis, according to an investor’s risk and return expectations and objectives, as well as to implement core allocations,” said Axel Lomholt, head of iShares product development for Europe, Middle East and Africa.