UBS broadens range of fixed income ETFs with new medium duration offering

Dec 8th, 2014 | By | Category: Fixed Income

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UBS Global Asset Management has broadened its range of fixed income ETFs with the listing of three new funds on the London Stock Exchange.

UBS broadens range of fixed income ETFs with new medium duration offering

UBS has launched three ETFs providing exposure to medium duration US corporate bonds.

The new ETFs provide medium-duration exposure to US investment-grade corporate bonds.

They are linked to the Barclays US Liquid Corporates 1-5 Year Index, an index which measures the performance corporate bonds with a maturity of between one and five years issued in US dollars by financial and non-financial companies based in the USA.

The funds include a GBP-hedged version, a USD trading version and GBP trading version. The GBP currency-hedged version enables sterling-based investors to gain exposure to the index with mitigated exchange rate risk.

The ETFs complement a trio of related ETFs which were launched by UBS in November. These ETFs offered full duration exposure to the Barclays US Liquid Corporates Index.

Commenting on the new listings, Andrew Walsh, Head of UBS ETF Sales UK & Ireland, said: “After the success we have had with our suite of currency-hedged equity ETFs, we are very happy to be expanding further in the currency-hedged fixed income space.”

He continued: “Adverse foreign currency movements can have a major impact on returns when investing abroad, particularly in fixed income. It’s entirely plausible that the foreign currency in which the underlying bond is denominated could decline against your home currency to such an extent that it completely negates the returns the investor received from the bond’s price return and coupon. This is a common concern for our clients, so the launch of the UBS ETF – Barclays US Liquid Corporates 1-5yr UCITS ETF (hedged to GBP) as well as our recently launched GBP-hedged ETF tracking the full duration version of this index, addresses this issue.”

The full range of LSE-listed UBS ETFs tracking the Barclays US Liquid Corporates indices (including their trading currency and total expense ratio) is below:

UBS ETF – Barclays US Liquid Corporates 1-5 Years UCITS ETF (hedged to GBP) A-dis (UC82)
GBp  0.23%

UBS ETF – Barclays US Liquid Corporates 1-5 Years UCITS ETF (USD) A-dis (UC81)
GBp  0.18%

UBS ETF – Barclays US Liquid Corporates 1-5 Years UCITS ETF (USD) A-dis (UC86)
USD  0.18%

UBS ETF – Barclays US Liquid Corporates UCITS ETF (hedged to GBP) A-dis (UC85)
GBp  0.23%

UBS ETF – Barclays US Liquid Corporates UCITS ETF (USD) A-dis (UC84)
GBp  0.18%

UBS ETF – Barclays US Liquid Corporates UCITS ETF (USD) A-dis (UC76)
USD  0.18%

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