LISTED PRODUCT NEWS
WORLD’S FIRST EURO HIGH YIELD BOND ETF
BlackRock’s exchange-traded funds (ETF)?platform iShares has launched the world’s first Euro High Yield Bond ETF. The fund tracks the performance of the Markit iBoxx Euro Liquid Corporates Index. The index uses multiple pricing sources for inclusion and is based on an average of the classifications allocated to each debt instrument by the major ratings agencies. It addresses liquidity concerns by offering exposure to nearly 100 of the most liquid sub-investment grade corporate bonds. Two-thirds of the bonds are BB-rated and 5 per cent are CCC-rated.
ETF SECURITIES’ ETCS EXCEED $1BN
ETF Securities’ short and leveraged exchange-traded commodities (ETC) have exceeded $1bn in assets under management (AUM) as of 1 September 2010 – a 26 per cent increase since the start of the year. The leveraged products have the greatest AUMs: ETFS Leveraged Natural Gas and ETFS Leveraged Crude Oil represent 27 per cent and 19 per cent. These figures are followed closely by short ETFs: for example, ETFS Short Crude Oil corresponds to 10 per cent and ETFS Short Copper to 7 per cent of the total AUM in ETF?Securities’ ETC portfolio.
HSBC’S NEW PACIFIC EX JAPAN ETF
HSBC has launched a new ETF pinned to the MSCI Pacific ex Japan Index. The index measures the performance of the largest companies in Australia, Hong Kong, Singapore and New Zealand. This fund is launched following HSBC’s MSCI Brazil ETF earlier this year, giving HSBC a total of 10 ETFs in its range. The fund is listed on the London Stock Exchange, but further European cross-listings and registration are expected later in the year. The total expense ratio is a competitive 0.40 per cent and it will be a physical replication of the index.