BlackRock’s iShares has launched a sub-investment grade corporate bond fund within its fixed income ETF range.
The iShares Euro Corporate Bond BB-B Ucits ETF provides exposure to over 200 Euro-denominated bonds rated between BB+ and B-.
The underlying index is market-value weighted with a single issuer accounting for a maximum of 5% and a country cap of 20%.
The fund is physically replicating, meaning it buys the securities of the index, and has a total expense ratio of 0.5%. It marks the 87th in the iShares European fixed income ETF range.
Brett Olson, head of Fixed Income for iShares in Emea, commented: “Investors are diversifying their fixed income exposure as they look for ways to generate income amid historically low interest rates. This ETF provides access to high yield bonds, whilst removing the higher credit risk associated with bonds rated lower than B-.”