BlackRock’s iShares has listed five ETFs on Italy’s stock exchange Borsa Italiana, including four thematic exchange traded funds and one offering exposure to ‘Fallen Angel’ bonds.
The four thematic ETFs aim to capture investment opportunities created by the global trends towards ageing population, healthcare innovation, robotics and automation, and digitalisation.
The themes stem from widely acknowledged megatrends, which are global economic, social, technological and demographic shifts that can have a major influence on everyday lives and are expected to become more important over the coming decades.
The iShares Fallen Angels High Yield Corporate Bond UCITS ETF (WING) provides exposure to global bonds that were once rated investment grade and have since been downgraded to high yield status. The underlying index of the fund has exposure to over 450 holdings, with exposure of each issuer capped at 3% of the total market value to ensure diversification.
The fund’s underlying index is rebalanced monthly and emerging market issuers and bonds rated below B- are excluded as part of its screening process.
“The search for extra returns at low cost is a major driver of the increasing demand for ETFs and with the new bond fund, investors now have the opportunity to exploit the potential for further returns which can come through historical price anomalies of ‘Fallen Angel’ bonds,” said Emanuele Bellingeri, iShares responsible for Italy.