Invesco PowerShares has bolstered its bonds offering with the launch of three fixed income ETFs, the company has announced.
The first ETF, the PowerShares USD Corporate Bond Ucits ETF, will track the Bloomberg Barclays USD Investment Corporate Liquidity-Screened Bond Index and offers one of the lowest annual fees in the market, set at 0.16%.
The average rating of the ETF's underlying assets will be A-, with industrials accounting for around 60% of the sector allocation, and a yield to maturity of 3.11%.
Second up is the PowerShares Euro Corporate Bond Ucits ETF, which will track the Bloomberg Barclays Corporate Index and also comes with an annual fee of 0.16%.
The underlying assets will be rated A- with industrials accounting for over half of the sector allocation. It will have a yield to maturity of 0.61%.
Last but not least, the PowerShares Emerging Markets USD Bond Ucits ETF, will track the Bloomberg Barclays Emerging Markets USD Sovereign Bond Index and offers an annual fee of 0.35%.
The average underlying assets will be BB+ and the top five country holdings are Argentina, Indonesia, Turkey, Mexico and Saudi Arabia.
These new ETFs will sit alongside the firm’s other nine active and passively managed fixed income ETFs, including the Pimco Euro Short-Term High Yield Corporate Bond Index Source Ucits ETF, which was launched in October.