The growing role of euro corporate bond ETFs

Why investors have favoured euro-denominated debt this year

Anna Fedorova

European central bank euro symbol

Relentlessly rising interest rates since the middle of 2022 have made bonds the investment of choice for many allocators.

As a result, fixed income ETFs enjoyed a record H1, with corporate bond products playing an increasingly important role in investors’ portfolios. On 14 September, the European Central Bank (ECB) hiked rates to an all-time high of 4%, sending the interest-rate sensitive two-year German bund yields to 3.16%.

With yields rising at home, European investors have favoured euro-denominated bonds over US dollar counterparts...

This article first appeared in ETF Insider, ETF Stream's monthly ETF magazine for professional investors in Europe. To read the full article, click here.