Deutsche AM adds corporates bonds to ‘Yield Plus’ ETFs

Deutsche Asset Management has expanded its ‘Yield Plus’ exchange-traded fund (ETF) range to include euro-denominated corporate bonds.

The db x-trackers iBoxx EUR Corporates Yield Plus Ucits ETF (DR)1 listed on the Deutsche Börse today. The firm said the move comes after the asset raising success of two established db X-trackers ETFs that provide exposure to the highest yielding investment grade government bonds in the Eurozone. These ETFs have a combined assets under management of €2.8 billion.

The new corporate bond ETF invests in the highest yielding investment grade euro-denominated corporate bonds. The firm says that the underlying strategy also allows for bonds that were investment grade at time of inclusion but have since been downgraded to remain in the index under certain constraints.

The ETF’s underlying index is the Markit iBoxx EUR Corporates Yield Plus Index, which tracks approximately 800 bonds denominated in euros.

“The strategic beta corporate bond index that our new ETF tracks offers a significant yield pick-up versus it’s non-yield plus equivalent,” said Martin Weithofer, Deutsche Asset Management’s head of strategic beta.

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