Six New IShares Bond and Commodity Index ETFs Launched on Xetra

August 20, 2012 /

Four new commodity index and two new bond index ETFs issued by iShares have been tradable in Deutsche Börse’s XTF segment since Thursday.

The four new iShares commodity index ETFs from the S&P GSCI index family give investors the opportunity to target participation in performance of four commodity groups: agriculture, energy, industrial metals and a comprehensive commodity basket.

Futures contracts are used to track the indices, with roll costs optimised. The weighting of a commodity component in the index may not exceed a maximum of 35% and no single legal commodity component may be allocated a weight of more than 20%.

The agricultural commodities group is currently comprised of cotton, coffee, cocoa, corn, soy beans, wheat and sugar. The energy sector is composed of unleaded petrol, diesel, natural gas, Brent crude and WTI. Industrial metals are made up of aluminium, lead, copper, nickel and zinc. The commodities basket covers the agricultural, precious metals, energy, industrial metals and livestock sectors.

iShares S&P GSCI Dynamic Roll Agriculture Swap (DE000A1J0ZD5)
iShares S&P GSCI Dynamic Roll Energy Swap (DE000A1J0ZE3)
iShares S&P GSCI Dynamic Roll Industrial Metals Swap (DE000A1J0ZF0)
iShares S&P GSCI Dynamic Roll Commodity Swap (DE000A1J0ZC7)

The two new bond index ETFs give investors the opportunity to participate in the performance of government bonds of Asian countries in the respective local currency or sub-investment grade corporate bonds denominated in US dollars.

The iShares Markit iBoxx $ High Yield Capped Bond enables investors to participate for the first time in high-yield corporate bonds denominated in US dollars. High-yield bonds have a sub-investment grade rating. These bonds have a higher risk of default, but therefore pay higher yields. Only the largest and most liquid bonds are considered. The weighting per issuer is limited to 3% in the reference index.

The iShares Barclays Capital EM Asia Local Govt Capped Bond offers the chance to participate in government bonds of Asian emerging markets in their respective local currency. The index currently includes these countries: Indonesia, Malaysia, the Philippines, South Korea and Thailand. The weighting per country is limited to 40%.

The product offering in Deutsche Börse’s XTF segment currently comprises a total of 997 exchange-listed index funds, making it the largest offering of all European stock exchanges. This selection, together with an average monthly trading volume of €12 billion, makes Xetra Europe’s leading trading venue for ETFs.

 

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