iShares has launched a European ETF which it claims is the first to offer exposure to global high yield bonds.
The iShares Global High Yield Bond ETF provides exposure to sub-investment grade bonds issues by corporates in developed markets.
The fund tracks the Markit iBoxx Global Developed Markets Liquid High Yield Capped index, with bonds included in the index rated BB+ or less by at least one of three main ratings agencies.
The fund will hold the constituent bonds physically and will be managed using a sampling technique providing investors with liquid exposure to the performance of the underlying index.
The fund has a total expense ratio of 50 basis points.
BlackRock iShares senior fixed income manager Alex Claringbull says: “Many of our European clients are looking to diversify away from their local bond markets. This new iShares ETF offers global exposure in one low cost trade giving a diversification that is difficult to achieve elsewhere.
“Fixed income will remain a key focus for iShares in 2013 as we continue to cater to the evolving demands and needs of our clients.”