iShares launches eight European bond ETFs

ETFiShares believes the eurozone crisis is no cause for investors to go without instruments to access sovereign debt in specific European countries, having launched eight single-country exchange-traded bond funds.

Several products target northern European states, such as Germany, Austria and Finland, which are regarded as creditworthy. But there is also an Italian bond ETF and a Spanish bond ETF for investors who want to make a different kind of bet. Spanish ten-year government bonds have been in the news lately for peaking at above 6%, the rate at which government borrowing is generally considered unsustainable.

iShares said the ETFs can be used to overweight or underweight bonds in fixed income portfolios on a country basis.

“This new series of single country eurozone debt exposures will allow [investors] to invest and express their views in a more precise fashion,” said Axel Lomholt, head of iShares product development in Europe.

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