The three new ETFs will give Australian retail investors access to global corporate bonds, global high-yield bonds and US dollar emerging markets bonds, said iShares.
iShares head of Australia Jon Howie said there is a “glaring hole” in Australian investors’ portfolios when it comes to global fixed income.
“Global fixed income provides exposure to many different regions, sectors, credit profiles and maturities bringing important diversifying qualities to an Australian portfolio,” Mr Howie said.
The iShares Global Corporate Bond ETF, the iShares Global High Yield Bond ETF and the iShares JP Morgan US Dollar Emerging Markets Bond ETF will be benchmarked against the Barclays Global Aggregate Corporate Index, the Markit iBoxx Global Developed Markets Liquid High Yield Capped Index and the JP Morgan EMBI Global Core Index, respectively.
All three ETFs will be hedged to Australian dollars, said iShares.
“While pockets of fixed income appear expensive, there is still value in global credit, high yield and emerging markets,” Mr Howie said.
“We are always looking for ways to help our clients build better portfolios. Launching global fixed income ETFs was a logical next step given iShares’ extensive experience, credibility and scale across global fixed income markets.
“By listing these three global fixed income ETFs, investors will be able to construct diversified portfolios and access different credit profiles to match their portfolio requirements,” Mr Howie said.
