DWS has launched a four-strong range of euro corporate bond ETFs with differing fixed maturities.
The ETFs are listed on the Deutsche Boerse and will mature in September 2027, 2029, 2031 and 2033, all with total expense ratios (TERs) of 0.12%.
The four ETFs are:
Xtrackers II Target Maturity EUR Corporate Bond September 2027 UCITS ETF (X0VA)
Xtrackers II Target Maturity EUR Corporate Bond September 2029 UCITS ETF (X0VB)
Xtrackers II Target Maturity EUR Corporate Bond September 2031 UCITS ETF (X0VC)
Xtrackers II Target Maturity EUR Corporate Bond September 2033 UCITS ETF (X0VD)
The range will track Bloomberg indices – with an SRI tilt – made up of hundreds of investment grade euro-denominated corporate bonds.
During the final year of maturity cash from the maturing bonds is switched into low-risk euro money market securities each month.
The ETFs are designed to enable quarterly distributions before paying out fully on their maturity date.
It said that products were launched in response to rising interest rates and will allow investors to benefit from a higher rate environment over the coming years.
The ETFs allow investors to access parts of the bond market with a specific maturity while benefitting from the diversification, transparency and liquidity benefits of the wrapper.
Simon Klein (pictured), global head of Xtrackers sales at DWS, said: “Our new ETF range, which we plan to add more products to in the future, makes it easier than ever for distribution-oriented investors to invest in a diversified bond portfolio that reflects many of the characteristics of a single bond."
It is the second ETF range in Europe to target fixed maturities after BlackRock launched its iBonds range earlier this year at the same price point as the Xtrackers strategies.
BlackRock expanded its range to nine ETFs – housing over $1bn assets under management – which also included Europe’s first fixed maturity Treasury ETF.