Industry Updates

DWS sees corporate bond ETF crash through €1bn barrier

Tom Eckett

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DWS has become just the third ETF provider in Europe to see one of its corporate bond products pass the €1bn barrier.

The Xtrackers EUR Corporate Bond UCITS ETF (XBLC) broke the €1bn mark earlier this month, the first DWS corporate bond ETF to do so.

The only other providers to have done this is State Street Global Advisors with its €2.5bn SPDR Barclays 0-3 Year Euro Corporate Bond UCITS ETF (SEUE) and BlackRock, who have a number of ETFs above the barrier.

Launched in 2010, XBLC offers investors exposure to an index of over 2,500 investment grade bonds with a total expense ratio (TER) of 0.16%.

Simon Klein, head of passive sales, Europe and Asia Pacific, at DWS, commented: “The passive index investing and sales teams have worked hard to make this product a success, and the flows it has attracted demonstrates XBLC’s high tracking quality and access efficiency within its product segment.”

Fixed income has been through somewhat of a revival this year with investors turning to the asset class amid a benign interest rate backdrop and trade war issues hampering the economic cycle.

In April, the iShares Core € Corp Bond UCITS ETF (IEAC) became the first fixed income ETF in Europe to break the €10bn mark.

According to BlackRock, bond ETPs pulled in $59.5bn in Q2 versus just $46.7bn inflows for equity ETPs.

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