iShares creates fixed income ETFs

iShares has developed a range of exchange traded funds (ETFs) giving exposure to fixed income.

The four funds listed on the London Stock Exchange have been designed to meet demand from investors for gilts and corporate bonds, the group says.

iShares Barclays Euro Aggregate Bond provides access to a basket of euro-denominated investment grade bonds, including treasury bonds, securitised bonds and corporate bonds. It tracks the performance of the Barclays Capital Euro Aggregate bond index.

The iShares Barclays Euro Corporate Bond gives exposure to euro-denominated investment grade corporate bonds from around the world. It tracks the Barclays Capital Euro Corporate bond index.

iShares Barclays Euro Treasury Bond 0-1 invests in government bonds with maturities up to 12 months. It tracks the performance of the Barclays Capital Euro Treasury 0-12 months bond index.

Finally, the iShares Citigroup Global Government Bond aims for broad international exposure to 500 bonds issued by G7 countries, and tracks the Citigroup G7 World Government bond index.

The funds will aim to take advantage of opportunities in fixed income, where corporate bond spreads are at record highs relative to government bonds, the group says.

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