Lyxor launches short term high yield bond ETF on LSE

Jul 7th, 2017 | By | Category: Fixed Income

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European ETF provider Lyxor has unveiled the Lyxor BofAML $ Short Term High Yield Bond UCITS ETF (HYST) on the London Stock Exchange, providing exposure to the performance of the short dated, US dollar-denominated sub-investment grade corporate bond market.

Lyxor launches short term high yield bond ETF on LSE

The Lyxor BofAML $ Short Term High Yield Bond UCITS ETF provides investors with exposure to an index currently yielding 5.8%.

The synthetically replicating fund tracks the BofA Merrill Lynch BB-CCC 1-3 Year US High Yield Constrained Index. It tracks over 1,800 components, each with a time to maturity of less than three years, with the majority of the index exposure in bonds rated ‘BB’ (48.5%) or ‘B’ (37.6%). The vast majority of bonds in the index are issued by firms domiciled in the US (81.5%), followed by Canada (4.3%) and Luxembourg (3.9%).

The index has a current yield of 5.8% and an effective duration of 2.1 years.

While HYST trades in US dollars, the fund also has a British pound-denominated share class which is trading under the ticker STUB. Each has a total expense ratio (TER) of 0.30%.

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