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iShares launches ETFs with access to high yield corporate bonds


Two new ETFs, issued by iShares, are tradable on Xetra and Börse Frankfurt.

The iShares USD High Yield Corporate Bond UCITS ETF EUR Hedged (Dist) enables investors to access the most liquid, US dollar-denominated corporate bonds from companies in industrialised countries. The bonds must have a sub-investment grade rating as well as a minimum term of one and a half and a maximum of fifteen years to be included in the reference index. The reference index components are weighted according to their market capitalisation. This ETF unit class uses a hedging strategy to hedge the exchange rate risk between the US dollar and the euro.
 
The iShares Fallen Angels High Yield Corporate Bond UCITS ETF EUR Hedged (Dist) offers investors access to the performance of high-yield corporate bonds that have been downgraded to a sub-investment grade rating. The bonds can be fixed or floating rate and must have a minimum term of one year. The reference index components are weighted according to their market capitalisation and are issuer-capped at 3 per cent. This ETF unit class uses a hedging strategy to hedge the exchange rate risk between the underlying portfolio currency and the euro.
 
Fees on the iShares USD High Yield Corporate Bond UCITS ETF EUR Hedged (Dist) are 0.27 per cent per annum and fees on the iShares Fallen Angels High Yield Corporate Bond UCITS ETF EUR Hedged (Dist) are 0.55 per cent.
 

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