iShares is making a smooth sharp entry into two popular points of European product innovation, listing a new thematic and short duration treasury ETF.
iShares Electric Vehicles and Driving Technology UCITS ETF (IEVD:GR, ECAR:LN)
iShares USD Treasury Bond 0-1yr UCITS ETF (IBTU, IB01)
ECAR will track the STOXX Global Electric Vehicles and Driving Technology Index.
The index is made up of companies that Stoxx judges to be "exposed to electric vehicles and assisted-driving technologies," the prospectus says. This includes companies that make electric and autonomous vehicles, batteries for electric cars, and companies in other parts of the supply chain.
To fit in the index, companies must:
Be liquid enough, and trade more than €1 million a day;
Be big enough, with a market cap greater than €200 million;
Make half their money (lowered to 45% for companies already in the index) from one or more of the following sectors: electronic vehicle manufacturers, electronic vehicle battery suppliers and/or an electronic vehicle manufacturers' supply chain, as determined by the index provider from time to time;
be domiciled in an eligible country, also determined by the index provider.
The index will aim to have 80 companies or more at all times. It will be rebalanced annually.
The fund will charge 0.40% and have US dollars as its base.
IBTU will be a short duration play. It will track the ICE US Treasury Short Bond Index and provide exposure to the short end of the Treasury curve targeting the 0-1 year maturity range and to reduce interest rate risk as well as minimize credit risk.
The fund will charge a mean 0.07%.