Industry Updates

DWS to launch fixed maturity euro corporate bond ETF range in Q4

Following client demand

Theo Andrew

Stefan Hoops

DWS is planning to launch a range of target maturity euro corporate bond ETFs before the end of the year.

The Xtrackers II Target Maturity EUR Corp Bond UCITS ETF range will launch in Q4 following demand from investors, Stefan Hoops, CEO of DWS, told analysts on its latest earnings call.

The range will have fixed maturity dates and will allow investors to target specific points on the yield curve, however, Hoops (pictured) did not disclose what these dates would be.

“We will be launching a target maturity euro corporate bond ETF range in Q4 in response to growing demand for the products,” he said.

It comes as investors continue to call for innovation in the fixed income ETF space despite the asset class booking another period of poor performance year to date.

In August, BlackRock unveiled Europe’s first fixed-maturity corporate bonds ETFs with a targeted maturity of December 2026 and 2028.

The US asset manager expanded the range a month later with five ETFs maturing in 2025 and 2027.

Targeting maturities through ETFs means investors can access parts of the bond market with a specific maturity while allowing them to benefit from the diversification, transparency and liquidity benefits of the wrapper.

The announcement follows a strong quarter for the German asset manager in which its ETF range recorded $7.5bn inflows – the second largest in Europe – gaining market share on Amundi.

Its ETF arm has continued to drive growth for DWS this year following a tough 2022. So far this year, its ETF and alternatives businesses combined have accounted for 86% of its $20bn net new inflows.

DWS has grown its ETF assets under management by 13% so far this year, ahead of its target 12% compound annual growth rate target.

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