iShares launches ETF tracking global high yield bonds

Global chartsiShares has launched a European exchange-traded fund (ETF) that provides exposure to global high yield bonds.

The ETF provides exposure to sub-investment grade bonds issued by corporates, based in developed markets worldwide, in dollar, euro, sterling or Canadian dollar.

It tracks the Markit iBoxx Global Developed Markets Liquid High Yield Capped Index, which includes bonds rated BB+ or less by at least one of three rating agencies.

“The fund will hold the constituent bonds physically and will be managed using a sampling technique providing investors with liquid exposure to the performance of the underlying index,” a statement says. “To ensure diversification, a cap has been applied so that no single issuer accounts for more than 3% of the fund.”

©2012 funds europe