Invesco says it has launched four of the lowest cost US Treasury bond exchange-traded funds (ETFs) in Europe as it concentrates on expanding its fixed income range.
The four ETFs have ongoing charges of 0.06% per annum and are listed in London.
Bonds in the funds have a range of maturities depending on the fund, though one of the three ETFs offers a broad exposure across the full spectrum of maturities.
They trade in US dollars or sterling, while a sterling-hedged version of the Invesco US Treasury Bond 7-10 Year Ucits ETF is also available with an ongoing charge of 0.10% per annum.
Paul Syms, regional head of ETF fixed income product management at Invesco, said: “Whether an investor is cautious or has a more moderate risk appetite, US Treasury bonds are likely to play a significant role in their portfolio. These highly rated bonds are often valued for their ‘safe haven’ status and could be increasingly attractive for any investor who is concerned about recession or market volatility.”
US Treasuries offer some of the highest government bond yields available in the G7 group of developed economies, Invesco said, adding that the yield on the benchmark 10-year US Treasury Bond index has more than doubled from the lows seen in mid-2016 as monetary policy has been tightened.
The funds, which are physically replicated and track Bloomberg Barclays benchmarks, are called: Invesco US Treasury Bond 1-3 Year Ucits ETF; Invesco US Treasury Bond 3-7 Year Ucits ETF; Invesco US Treasury Bond 7-10 Year Ucits ETF; Invesco US Treasury Bond Ucits ETF.
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