Deka has announced the launch of a new ETF, offering institutional investors access to Eurozone government bonds with a minimum volume of €2bn and a maturity of at least ten years.
The ETF, which is Ucits compliant, tracks the performance of the Solactive Eurozone Rendite Plus 1-10 Bond Index, which consits of up to five fixed interest bonds with the highest average returns over a five year basis.
All components are investment grade (at least BBB according to S&P or Baa3 according to Moody’s), whilst being capped at a maximum of 20% per country. The index currently contains government bonds from Spain, Italy, France, Belgium, Ireland and Slovakia.
The fund launched on Deutshe Börse and Stuttgart Börse on 16 November, distribution of returns will take place up to four times per year and the annual management fee amounts to 0.15%.