Lyxor Asset Management has added a short-dated gilts ETF to its fixed income range, aiming to benefit from the UK’s lower interest rates policy.
The Lyxor FTSE Actuaries UK Gilts Ucits ETF has a duration of up to five years and will track the FTSE Actuaries UK Conventional Gilts Up To 5 Years index.
Government bond ETFs have attracted €4.7bn (£3.9bn) in new assets this year, according to Lyxor.
Lyxor head of UK and Ireland ETF sales Chanchal Samadder says: “We have a clear ambition to be the number one choice for core fixed income ETFs, providing investors with a wide range of low-cost tools to invest in what has become a very complex interest rate environment.”
The fund has a fee of 0.07 per cent.
Samadder says: “This isn’t just about lowering fees, but providing the right exposures, and using the right replication. This new ETF means we can now offer low cost, physical exposure to all parts of the Gilts market”.
Lyxor has €11bn in assets in fixed income ETFs as of 30 June 2016.