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Invesco unveils low-cost euro bond ETFs

European_CommissionInvesco has launched five low cost euro government bond exchange-traded funds (ETFs) in Europe with a choice of four maturity ranges.

All the ETFs are being listed on Borsa Italiana and Deutsche Börse Xetra. Ongoing charges are set at 0.10% per year – among the lowest cost exposures to European sovereign debt according to the firm.

“With $33 billion (€30.1 billion) in assets under management, euro government bonds is the second-largest fixed income ETF category in Europe,” said Paul Syms, head of Europe, Middle East and Africa (Emea) ETF at the fund manager.

“Over the past 12 months, there has been in excess of $5 billion of flows into this sector and, in today’s uncertain environment, we would expect this allocation to increase as investors adjust their risk profiles.”

Invesco expects that the current backdrop for euro government bonds is supportive, with the European Central Bank set to announce further easing in its September meeting.

The latest ETFs are:

  • Invesco Euro Government Bond 1-3 Year Ucits ETF
  • Invesco Euro Government Bond 3-5 Year Ucits ETF
  • Invesco Euro Government Bond 5-7 Year Ucits ETF
  • Invesco Euro Government Bond 7-10 Year Ucits ETF
  • Invesco Euro Government Bond Ucits ETF

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