Deutsche Asset Management has expanded its x-tracker range with the launch of a US dollar corporate bond ETF as part of its ‘yield plus’ push.
The new fund, called the Xtrackers iBoxx USD Corporate Bond Yield Plus Ucits ETF, focuses on the highest yielding investment grade corporate bonds and is largely drawn from US dollar investment grade bond issuers.
It will focus on the top 33% of bonds ranked by yield according to the Markit iBoxx USD Corporates index. Bonds must be investment grade at the time of inclusion.
Deutsche AM said the ‘yield plus’ element is composed of approximately 1,400 bonds and provides around 0.47% yield pick-up versus the wider investment grade corporate bond index.
The new ETF has an annual all-in fee of 0.25% and is a physical replication ETF. It is designed to complement Deutsche AM’s existing range of yield plus Xtrackers, providing exposure to euro corporate bonds and eurozone government bonds.