Deutsche Rolls Out New Bond ETF

Deutsche Asset Management today rolled out an ETF that tracks an index of short-duration, high-yield debt. The Xtrackers Short Duration High Yield Bond ETF (SHYL) targets corporate debt denominated in U.S. dollars.

It comes with an expense ratio of 0.20% and lists on the NYSE Arca.

The Solactive benchmark that underlies the fund requires that issuers represented in the index have at least $1 billion in outstanding face value, while the individual bonds eligible for inclusion in the index must have at least $400 million in outstanding face value.

In terms of maturity, the bonds must have an original maturity of 15 years or less and remaining maturity of five years or less, the prospectus says.

The index is cap-weighted, with a 3% cap on individual securities. It is rebalanced and reconstituted monthly.

The document notes the fund’s underlying index includes 477 bonds from 272 issuers representing 20 different countries, including the U.S.

Contact Heather Bell at [email protected]