US-based asset manager Vanguard has launched a fixed income-focused Exchange Traded Fund.
The Vanguard Global Government Bond Ucits ETF will be listed on the London Stock Exchange, Deutsche Börse, Borsa Italiana, Euronext Amsterdam and Six Swiss Exchange.
The ETF, which has an ongoing charges figure of 0.10%, seeks to track the Bloomberg Global Treasury Developed Countries Float Adjusted Index. The ETF will be available to investors in the UK and Continental Europe as part of Vanguard’s Ucits range.
The fund will be managed by Vanguard’s fixed income group which manages more than $2.47 trillion in global assets With the new fund, Vanguard now offers 34 fixed income index products.
Mark Fitzgerald, head of product specialism at Vanguard Europe, said: “Investors are often tempted to invest locally when it comes to fixed income, largely out of familiarity.
“However, the added diversity of a global government bond allocation can reduce the risk of an investor’s fixed income portfolio, without necessarily decreasing the expected returns, provided the currency risk is hedged.
“By adding global government bonds, investors gain exposure to a greater number of securities, different inflation and economic environments, as well as business cycles from a wider range of markets.”
