WisdomTree cross-lists ‘enhanced yield’ bond ETFs onto Borsa Italiana

Jul 27th, 2018 | By | Category: Fixed Income

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WisdomTree has cross-listed its recently launched pair of ‘enhanced yield’ fixed income ETFs onto Borsa Italiana.

WisdomTree cross-lists 'enhanced yield' bond ETFs onto Borsa Italiana

WisdomTree has cross-listed its recently launched ‘enhanced yield’ bond ETFs onto Milan’s Borsa Italiana.

The funds, which listed on Deutsche Börse at the start of the month, seek to provide superior yields compared to standard core European investment-grade and treasury benchmarks, while limiting tracking error and risk.

Euro aggregate

The WisdomTree EUR Aggregate Bond Enhanced Yield UCITS ETF tracks the Bloomberg Barclays Euro Aggregate Enhanced Yield Bond Index.

The index aims to achieve a higher yield to its parent index, the Bloomberg Barclays Euro Aggregate Bond Index, with low tracking error. The index incorporates investment grade, euro-denominated, fixed-rate securities, including treasuries, government, corporate and securitised bonds.

To achieve its aim, the index uses a rules-based methodology to tilt the weightings towards higher-yielding segments of the market while controlling for several bond risk factors and anticipated tracking error. Presently, the fund is most highly exposed to Germany (20.2%), followed by Spain (18.6%) and Italy (13.9%).

The ETF has a total expense ratio (TER) of 18bps. It has been listed on Borsa Italiana with accumulating (Ticker: EYLD IM) and distributing (Ticker: YLD IM) share classes.

Euro govies

The WisdomTree EUR Government Bond Enhanced Yield UCITS ETF tracks the Bloomberg Barclays Euro Treasury Enhanced Yield Bond Index.

The index uses a similar methodology to enhance the yield, while limiting tracking error, of the parent Bloomberg Barclays Euro Treasury Bond Index. The index incorporates investment-grade, euro-denominated, fixed-rate government bonds issued by eurozone countries.

The fund is most highly exposed to Italy (28.1%), followed by Spain (23.5%) and Germany (20.6%).

It has a TER of 16bps and has also been listed with both accumulating (Ticker: WGOV IM) and distributing (Ticker: GOVE IM) share classes.

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