Tabula launches European investment grade bond ETF

MJ Lytle of Tabula

Fixed income ETF provider Tabula Investment Management has expanded its range with the launch of a European investment grade bond ETF.

The Tabula iTraxx Europe IG Bond UCITS ETF is listed on the London Stock Exchange (TTRX) and Xetra (TABX) with a total expense ratio (TER) of 0.29%.

TTRX tracks the new iBoxx iTraxx Europe IG Bond index which the firm developed in partnership with IHS Markit.

The index combines the construction of an iBoxx index with the geographic and sector exposure of iTraxx Europe, the reference instrument for trading European investment grade bonds via credit default swaps.

The index offers investors exposure to bonds only issued by European companies and has a 5-year maturity target.

TTRX also consists of fixed sector bands with equal weighting per issuer to achieve diversification.

Physically replicated through optimised sampling, TTRX is EUR-denominated and rebalances semi-annually.

Tabula kicks off Germany push

Michael John Lytle (pictured), CEO of Tabula, commented: “Working together [with IHS Markit] we are able to offer differentiated European corporate bond exposure.”

Frans Scheepers, managing director for indices at IHS Markit, added: “The ETF provides investors with a new instrument to gain exposure to the corporate credit market.”

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