Deutsche Asset & Wealth Management launches an ETF that provides exposure to the US dollar-denominated liquid corporate bond market.
db x-trackers Barclays USD Corporate Bond UCITS ETF (DR)* tracks the Barclays USD Liquid Investment Grade Corporate Index. The index comprises almost 1,500 bonds2, over 80% of which have been issued by US-domiciled companies. The ETF has listed on the Deutsche Börse and will shortly list on the London Stock Exchange.
The average credit rating of bonds in the index is investment grade (i.e. at least Baa3 from Moody’s, BBB from Fitch Ratings, or BBB- from Standard & Poor’s), while the current index yield is 3.69%3.
“With yields on many short maturity major government bonds now in negative territory, which means investors are effectively paying to own these bonds, there is a demand for fixed income exposure that generates a reasonable yield. Our new US dollar corporate bond ETF helps meet that demand,” comments Erik Rotander, Head of the Nordics, Passive Investments.
The ETF is physically replicating and has an All-in Fee of 0.2% per annum.
By the end of August this year, fixed income ETFs globally had generated almost USD 52.8 billion in inflows year-to-date4.
Deutsche AWM has a large suite of fixed income ETFs, including the db x-trackers Barclays Global Aggregate Bond UCITS ETF**, which tracks the global market for government, governmental, supranational, corporate, asset-backed and mortgage-backed securities across the full spectrum of maturities and the investment-grade credit rating range. The ETF launched in March 2014 and has EUR 500 million in assets under management5.
1 Source: Deutsche AWM, September 29, 2015
2 Source: Barclays Bank plc, September 17, 2015
3 Source: Barclays Capital Indices, October 4, 2015
4 Source: ETFGI, September 8, 2015
5 Source: Deutsche AWM, September 29, 2015
* A sub-fund of Concept Funds Solutions plc.
** A sub-fund of db x-trackers and domiciled in Luxembourg.
Product Details
Name of ETF: db x-trackers Barclays USD Corporate Bond UCITS ETF (DR)
BBG Code: XDGU
ISIN: IE00BZ036H21
Fund Currency: USD
Listing Currency: USD
Annual All-in Fee: 0.20%
Physical/synthetic: Physical
UCITS compliant: Yes
Deutsche Asset & Wealth Management
With EUR 1.14 trillion of assets under management (as of June 30, 2015), Deutsche Asset & Wealth Management¹ is one of the world’s leading investment organizations. Deutsche Asset & Wealth Management offers individuals and institutions traditional and alternative investments across all major asset classes. It also provides tailored wealth management solutions and private banking services to high-net-worth individuals and family offices.
¹ Deutsche Asset & Wealth Management is the brand name of the Asset & Wealth Management division of the Deutsche Bank Group. The legal entities offering products or services under the Deutsche Asset & Wealth Management brand are listed in contracts, sales materials and other product information documents.
