WisdomTree has launched a new actively managed ETF providing exposure to the mortgage-backed sector. The WisdomTree Mortgage Plus Bond Fund (MTGP US) has listed on NYSE Arca and is sub-advised by Voya Investment Management. The ETF primarily targets agency-backed MBS but may also seek opportunities in other sectors of the securitized debt market. Rick Harper, Head of Fixed Income and Currency at WisdomTree, commented, “We believe MTGP may be a compelling strategic option for investors seeking a generally more stable source of income”.

BNP Paribas Asset Management has listed a pair of ETFs on Euronext Paris providing exposure to euro-denominated corporate bonds from issuers with low carbon footprints and favourable ESG characteristics. The BNP Paribas Easy € Corp Bond SRI Fossil Free 1-3Y UCITS ETF (SRIC3 FP) provides exposure to bonds with remaining maturities of one to three years, while the BNP Paribas Easy € Corp Bond SRI Fossil Free 3-5Y UCITS ETF (SRIC5 FP) covers the three-to-five-year maturity segment. The funds come to market with assets of €240m and €54m respectively.

BlackRock has introduced a new share class for the iShares China CNY Bond UCITS ETF providing currency-hedged exposure to renminbi-denominated government and policy bank bonds issued in China. The new share class, which hedges exchange rate risk between renminbi and the US dollar, trades on Euronext Amsterdam under the ticker CYBU NA.

Invesco has lowered the fees on a pair of fixed income ETFs providing exposure to USD and EUR corporate bonds. The Invesco USD Corporate Bond UCITS ETF and Invesco Euro Corporate Bond UCITS ETF have had their expense ratios reduced by six basis points from 0.16% to 0.10%.

BlackRock appears set to be the first European ETF issuer to offer an ESG-screened bond fund targetting the USD corporate high-yield sector. The iShares USD High Yield Corp Bond ESG UCITS ETF is scheduled to make its debut next week on Euronext Amsterdam (DHYE NA) and London Stock Exchange (DHYA LN).

Shenzhen-based asset manager Bosera Fund Management has launched a new ETF in China providing exposure to mid- and small-cap A-share equities. The Bosera CSI 500 ETF (159968 CH) has listed on Shenzhen Stock Exchange and comes with a management fee of 0.15%, making it the lowest cost CSI 500 ETF on the market.

Vanguard has reduced the fees charged on 13 of its European domiciled ETFs. The reductions vary from between two and seven basis points and are set to save investors approximately $4.2 million per year, based on current assets under management. Sean Hagerty, Head of Vanguard for Europe, commented, “For too long, investors have been poorly served with high-cost, complex investments…There is still a misconception that the more you pay for an investment, the better it performs. In reality, costs really impact the returns investor make – every pound paid in fees is a pound off investors’ returns.”

Financial data giant Bloomberg has been recognized by the Financial Conduct Authority (FCA) as an administrator under the European Union’s Benchmarks Regulation. Steve Berkley, Global Head of Bloomberg Indices and CEO of Bloomberg Index Services Limited, commented, “Today’s news underscores our commitment to upholding the industry’s regulatory standards to ensure the accuracy and integrity of benchmarks.”

State Street Global Advisors (SSGA) has launched a new USD-hedged share class for the SPDR Bloomberg Barclays Global Aggregate Bond UCITS ETF on Deutsche Börse Xetra. The fund tracks the Bloomberg Barclays Global Aggregate Bond Index, providing diversified exposure to investment-grade bonds across multiple sectors and segments from both developed and emerging market issuers.

By Karen Schenone, Fixed Income Product Strategist, BlackRock.

Economic uncertainty has increased investor focus on the possibility of BBB-rated bonds being downgraded to junk. Investors should weigh this risk with their search for yield.