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Lyxor adds to yield-curve ETF range

US_federal_reserveLyxor ETF has announced a range of products designed to take positions on the future shape of bond yield curves in the US and Germany.

Lyxor, one of Europe’s largest exchange-traded fund (ETF) firms, already listed a US yield-curve product on the London Stock Exchange in August but has also rolled out three other similar products, describing all four as Europe’s first ETFs of their kind.

Another French asset manager, Ossiam, also recently launched a US yield-curve ETF, noting that the launch was “timely” as the US yield curve was at its flattest for over a decade.

Lyxor says the ETFs are designed to help investors express their views on expected changes in the shape of the US Treasury and German Bund yield curves.

The products focussed on the US are:

  • Lyxor US Curve Steepening 2-10 Ucits ETF, allowing investors to potentially profit from an increase in the yield differential between 2-year and 10-year US Treasuries, known as a ‘steepening’ of the yield curve
  • Lyxor US Curve Flattening 2-10 Ucits ETF, which helps investors take an opposing view.

And on German bunds, the products are:

  • Lyxor EUR Curve Steepening 2-10 Ucits ETF
  • Lyxor EUR Curve Flattening 2-10 Ucits ETF.

Each ETF has a total charge of 0.30%. Listings are in London, Italy, Germany and on Euronext for the US products, and Euronext, Italy and Germany for the Bund products.

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