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.