Invesco has launched a Ucits-compliant sterling corporate bond exchange-traded fund (ETF) which aims to deliver the performance of the Bloomberg Barclays Sterling Liquid Corporate Bond Index.
The index that the fund will follow comprises investment grade, fixed-rate securities denominated in sterling with at least £350 million (€398 million) per amount outstanding. Individual issuers are capped at 4% of the index.
The ETF is the latest addition to the Invesco’s fixed income range, which includes US dollar and euro denominated corporate bonds.
The ongoing charge has been set at 0.10% per annum.
Paul Syms, head of ETF fixed income product management at Invesco, said: “The current market volatility and widespread concerns around the coronavirus pandemic is driving a risk-off environment.
“Government bond yields have tumbled to all-time lows while credit yields have risen at a time when the Bank of England’s policy response is designed to support both asset classes, meaning credit could be looking more attractive.”
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