iShares, the exchange-traded fund (ETF) platform of BlackRock, has launched the first European ETF to invest in global high yield bonds to help investors searching for income in a low yield environment.
The ETF will invest in sub-investment grade bonds issued by corporates in developed markets worldwide, and will track the Markit iBoxx Global Developed Markets Liquid High Yield Capped Index. In order to ensure diversification, no single issuer will account for more than 3% of the fund.
Alex Claringbull, senior fixed income portfolio manager for BlackRock’s iShares, commented: “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.” The fund has a total expense ratio of 50 basis points.