DWS has broadened its fixed income suite in Europe by launching a trio of US Treasury ETFs targeting bonds from specific segments of the yield curve.

US Treasuries form a key part of the core of investors’ portfolios.

The three new ETFs, which have been listed on Frankfurt Stock Exchange and London Stock Exchange, invest in US Treasuries with remaining maturities between three and seven years, between seven and ten years, and greater than ten years.

They are the Xtrackers II US Treasuries 3-7 UCITS ETF (LT13TR), Xtrackers II US Treasuries 7-10 UCITS ETF (LT09TR), and Xtrackers II US Treasuries 10+ UCITS ETF (LUTLTR).

Each ETF is linked to a maturity-specific sub-index of the Bloomberg US Treasury Index which consists of US dollar-denominated, fixed-rate, nominal debt issued by the US Treasury. Treasury bills, inflation-linked bonds, floating-rate bonds, and STRIPs are not eligible for inclusion.

Constituents are weighted by market value, and the indices are reconstituted and rebalanced monthly.

The new additions complement DWS’s existing line-up of US government bond ETFs which includes two funds targeting Treasuries with remaining maturities below one year or between one and three years, as well as a third fund that is broadly diversified across the yield curve.

US Treasuries form a key part of the core of investors’ portfolios, and DWS’s line-up of low-cost US Treasury bond ETFs, which collectively house around $4.7 billion in assets, provide a full toolkit for effectively managing duration and maturity exposure.

Each ETF in the suite comes with an expense ratio of just 0.06%, making them amongst the lowest-cost US Treasury ETFs available in Europe.

Michael Mohr, Global Head of Xtrackers Products at DWS, commented: “Given the rise in interest rates, US government bonds are an important portfolio component for many investors. With the new products, Xtrackers completes the maturity spectrum of US Treasury ETFs and enables more precise duration management for different investment strategies.”