BlackRock lists GBP-hedged US Treasury bond ETF on LSE

Sep 18th, 2019 | By | Category: Fixed Income

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BlackRock has introduced a currency-hedged share class for its broad maturity US Treasury bond ETF on London Stock Exchange.

BlackRock lists GBP-hedged US Treasury bond ETF on LSE

The iShares $ Treasury Bond UCITS ETF provides exposure to US Treasuries from across the yield curve.

The iShares $ Treasury Bond UCITS ETF GBP-Hedged trades under the ticker GOVP LN and hedges exposure between the US dollar and pound sterling, the share’s trading currency.

The fund is linked to the ICE US Treasury Core Bond Index which covers fixed-rate US Treasury securities with maturities between one and thirty years and par amounts outstanding of at least $300 million.

Zero-coupon bonds, inflation-linked securities, Treasury Bills, and agency bonds are not eligible for selection.

The index is weighted by market value and rebalanced on a monthly basis.

The fund debuted in early September with listings on Euronext Amsterdam in US dollars (GOVT NA) and Deutsche Börse Xetra in euros (SNA2 GY).

The new GBP-hedged share class comes with an expense ratio of 0.10%, slightly higher than the ETF’s unhedged listings which cost 0.07%.

The fund complements existing Treasury ETFs offered by BlackRock, including funds targeting specific ranges of the yield curve, namely the 0-1 year, 1-3 year, 3-7 year, 7-10 year, and 20+ year segments. BlackRock offers GBP-hedging on the 1-3 year and 7-10 year ETFs under the tickers IBTG LN and IGTM LN, respectively.

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