] is launching its third and fourth new exchange-traded funds of the week. Today the BlackRock
subsidiary will release, via the BATS exchange, its Global High Yield Corporate Bond Fund
(GHYG) and Morningstar Multi-Asset Income Index Fund
on the launch.
These two launches follow the debut earlier this week, also on BATS, of two more fixed income ETFs from iShares [see MFWire.com, 4/3/2012
iShares claims that the Global High Yield Corporate Bond Fund is a first for the industry, as it will provide high yield exposure in one investment through developed international corporate bonds denominated in US dollar, euros, pound sterling and Canadian dollar.
The Morningstar Multi-Asset Income Index Fund will allocate 60 percent of assets to fixed income, 20 percent to equities and 20 percent to alternative income sources.
Two More iShares ETFs Debut Today
BlackRock's BLK -1.33% iShares unit, the world's largest ETF sponsor, will introduce its third and fourth ETFs this week when it rolls out the iShares Global High Yield Corporate Bond Fund (bats:GHYG) and the iShares Morningstar Multi-Asset Income Index Fund (bats:IYLD). The two funds will add to iShares' growing lineup on the BATS Exchange.
The The iShares Global High Yield Corporate Bond Fund will track the Markit iBoxx Global Developed Markets High Yield Index. At the end of February, that index was comprised of almost 650 high yield corporate bonds denominated in U.S. dollars, Euros, British pounds sterling and Canadian dollars. GHYG will have an expense ratio 0.55%.
The The iShares Morningstar Multi-Asset Income Index Fund will track the the Morningstar Multi-Asset High Income Index. Thaat index is designed to provide 20% exposure to equities, a 20% allocation to alternative investment strategies and a 60% weight to fixed income products.
IYLD's index is comprised of other iShares ETFs including the following: The iShares Dow Jones Select Dividend Index Fund DVY -0.59% , the iShares Dow Jones International Select Dividend Index Fund IDV -1.95% and the iShares S&P Global Infrastructure Index Fund IGF -1.27% . The following ETFs are found within the fixed-income asset class: The iShares iBoxx $ High Yield Corporate Bond Fund HYG -0.37% , the iShares Barclays 20+ Year Treasury Bond Fund TLT +1.37% , the iShares J.P. Morgan USD Emerging Markets Bond Fund , the iShares S&P/Citigroup International Treasury Bond Fund IGOV -0.58% , and the iShares 10+ Year Credit Bond Fund GLJ +0.75% . The following funds are found among the alternatives asset class: The iShares S&P U.S. Preferred Stock Index Fund PFF -0.41% the and iShares FTSE NAREIT Mortgage Plus Capped Index Fund REM -0.37% .
IYLD will have an expense ratio of 0.6%.
Earlier this week, iShares introduced the iShares Emerging Markets High Yield Bond Fund (bats:EMHY) and the the iShares Global ex USD High Yield Corporate Bond Fund (bats:HYXU).
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iShares Lists New High-Yield ETFs
April 4th at 1:55pm by Tom Lydon
iShares, the exchange traded fund arm of BlackRock, launched two new bond ETFs this week, with a plan of two more to debut later this month. The new funds center on high-yield stocks representing developed and emerging markets.
“As investors have broadened their search for new income sources globally, high yield has emerged as one of the market’s more significant opportunities,” Darek Wojnar, Head of U.S. iShares Product Development and Management at BlackRock, said. [Special Report: Navigating Higher Rates with Bond ETFs]
“Market conditions – in particular, an unprecedented low rate environment – continue to make it vital for investors of all kinds to identify new sources of yield and income,” Wojnar said. [Treasury ETFs Suffer Worse Loss Since 2010]
Van Eck this week introduced an international high-yield bond ETF. [Global Junk Bond ETF]
The new iShares ETFs will premiere on the BATS exchange, the third largest exchange — iShares is the only provider that has launched funds there. [How Changes in Bond Rates Affect Fixed-Income ETFs]
The first funds to debut are:
iShares Emerging Markets High Yield Bond Fund (BATS: EMHY) A first to market product, this ETF provides access to high yield bonds denominated in USD and includes a 65% allocation to sovereign bonds and 35% to corporate issues.
iShares Global ex USD High Yield Corporate Bond Fund (BATS: HYXU) Also a first to market product, this fund offers access to developed international non-U.S. denominated high yield bonds, which are denominated in euros, pound sterling and Canadian dollars. The fund’s highest country allocations are France (15 percent), the United Kingdom (15 percent), Germany (14 percent), and the Netherlands (12 percent).
The funds scheduled to list April 5 are:
iShares Global High Yield Corporate Bond Fund (BATS: GHYG) Also a first to market product, GHYG provides complete global high yield in one trade, via developed international corporate bonds denominated in the USD, euros, the pound sterling, and the Canadian dollar. Based on the country of the issuer, the fund is allocated 69 percent to the U.S., 16 percent to Europe, 4 percent to the United Kingdom, and 3 percent to Canada.
iShares Morningstar Multi-Asset Income Index Fund (BATS: IYLD) An ETF of iShares ETFs that delivers income with a diversified, managed approach. The fund is allocated 60 percent to fixed income, 20 percent to equity and 20 percent to alternative income sources.
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