X-trackers extends bond ETF range

Tracker ETFsDeutsche Asset Management has launched a high yield bond ETF, with two listings on European stock markets in the past week.

The db x-trackers USD High Yield Corporate Bond Ucits ETF was listed on the London Stock Exchange on Wednesday (14th) and the Deutsche Börse last Friday.

It tracks an index from the Bloomberg Barclays High Yield Very Liquid Bond Index family, and the index consists of about 640 sub-investment grade bonds to produce a yield of about 6%.

The ETF has an all-in fee of 0.35% per annum and uses direct, physical replication to track its index.

Blanca Koenig, fixed income ETF strategist at the firm, said investors were continuing to look for higher-yielding bond exposures as well as monitoring interest rate sensitivity.

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