Deutsche Asset Management (AM) has expanded its product range of Xtrackers bond ETFs with the launch of the db x-trackers USD High Yield Corporate Bond Ucits ETF.
The new ETF was officially launched on 9 February. It tracks an index of the Bloomberg Barclays High Yield Very Liquid Bond Index family. Its benchmark is made up of some 640 corporate bonds rated below investment grade.
“Investors continue to seek access to higher yielding bonds, but still want to keep an eye on interest rate risk,” said Eric Wiegand, head of Xtracker’s ETF strategy, Europe and Asia.
The new Xtrackers product offers a current interest rate of 6% with a duration of 4.1 years.
In total, Deutsche AM offers 50 fixed income ETFs with additional currency hedged share classes. In about two-thirds of the Xtrackers bond ETFs offered, the underlying index is physically replicated. The ETF has a flat fee of 0.35% per annum.