Invesco introduces GBP-hedged share classes for US Treasury ETFs

Jul 1st, 2019 | By | Category: Fixed Income

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Invesco has launched new ETF share classes on London Stock Exchange and SIX Swiss Exchange, providing access to different segments of the US Treasury bond market while hedging currency exposure to pound sterling.

Invesco introduces GBP-hedging on US Treasury ETFs

The new share classes offer currency hedging between the US dollar and pound sterling.

The listings are share classes of existing ETFs that target short-term Treasury bonds as well as Treasury bonds from across the yield curve.

They are the Invesco US Treasury Bond 1-3 Year UCITS ETF GBP Hedged (T3GB LN, T3GB SW) and the Invesco US Treasury Bond UCITS ETF GBP Hedged (TRGB LN, TRGB SW).

The ETFs track Bloomberg Barclays index that consists of US dollar-denominated, fixed-rate, nominal debt issued by the US Treasury.

Inflation-linked bonds, floating-rate bonds, STRIP bonds, and Treasury bills are excluded.

The short-term (i.e. 1-3 yr) Treasury ETF targets bonds with remaining maturities between one and three years, while the broad market ETF extends its maturity range up to 30 years.

Each new currency-hedged share class comes with an expense ratio of 0.10%, four basis points more expensive than their non-hedged counterparts which cost 0.06%.

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