iShares expands fixed income range with eight single country Eurozone sovereign debt funds
iShares, the Exchange Traded Funds (ETF) platform of BlackRock, has launched eight funds that provide precise and targeted exposure to the sovereign debt of eight Eurozone countries.
The launch represents the continued expansion of iShares’ fixed income range to meet growing interest in fixed income ETFs, and 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
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%. The ETFs providing exposure to sovereign debt from Austria, Belgium, Finland, the Netherlands and Spain are the first of their kind in the world.
Axel Lomholt (pictured), Head of iShares Product Development EMEA, says: “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.
“The launch of this series makes iShares the first provider in Europe to offer multiple single country Eurozone sovereign exposures under one roof. It remains our priority to build out our fixed income product range, and further funds will be developed in response to investor demand.”
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