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Deutsche Asset Management expands high yield ETF suite


Deutsche Asset Management (Deutsche AM) has added three Xtrackers exchange-traded funds (ETFs) to its high yield suite – Xtrackers Short Duration High Yield Corporate Bond ETF (NYSE Arca: SHYL), Xtrackers High Beta High Yield Bond ETF (NYSE Arca: HYUP) and Xtrackers Low Beta High Yield Bond ETF (NYSE Arca: HYDW). 

The new funds complement the current offering of the Xtrackers USD High Yield Corporate Bond ETF (NYSE Arca: HYLB), which has raised more than USD 500 million since its launch just over one year ago (as of January 11 2018). The three new products will provide investors with exposure to different levels of credit and interest rate risk for more customisable risk allocation in their portfolios.
 
HYUP offers investors access to lower-credit quality, higher beta bonds, while HYDW provides access to lower beta bonds. Through SHYL, investors will now have the most cost-efficient access, in its Morningstar peer group, to benchmark exposure to short duration high yield bonds.
 
“In today’s low interest rate environment, fixed income investors are looking for new sources of yield,” says Fiona Bassett, Head of Passive Asset Management, Americas. “Our expanded Xtrackers suite of high yield bond ETFs uses rules-based strategies to provide exposure to different levels of credit and interest rate risk, allowing investors to manage credit and duration exposure for a more customized solution. SHYL will allow investors to gain cost efficient exposure specifically to the short duration high yield bonds. In addition, the unique construction methodology of HYUP and HYDW may help investors achieve their desired level of yield and credit risk while maintaining varied exposure to the underlying high yield market.”
 
SHYL seeks to track the performance, before fees and expenses, of the Solactive USD High Yield Corporates Total Market 0-5 Year Index. HYUP seeks to track the performance, before fees and expenses, of the Solactive USD High Yield Corporates Total Market High Beta Index. HYDW seeks to track the performance, before fees and expenses, of the Solactive USD High Yield Corporates Total Market Low Beta Index.
 

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