Best New Fixed Income ETF in Europe – 2016
Awarded to the most important fixed income ETF launched in 2016. Note: Importance is measured by the overall contribution to positive investor outcomes. The award may recognise ETFs that open new areas of the market, lower costs, drive risk adjusted performance or provide innovative exposures not previously available to most investors. Only ETFs with inception dates after 1 January, 2016, are eligible. ETF must be classified by FactSet as a fixed income ETF to qualify.
- Amundi ETF Floating Rate USD Corporate UCITS ETF – Hedged EUR
Amundi’s new floating rate note meets concerns about rising interest rate and mounting currency volatility head on, offering investors a way to gain access to yield without taking on duration risk.
- The db X-trackers iBoxx USD Emerging Sovereigns Quality Weighted UCITS ETF
Emerging market debt is exciting, but how do you avoid EM bonds that are in trouble? This new DB product applies fundamental analysis to the emerging markets space in an effort to sidestep bonds prior to a downgrade.
- The Fullgoal FTSE China Onshore Sovereign and Policy Bank Bond 1-10 Year Index ETF
The Fullgoal FTSE China Onshore Sovereign and Policy Bank Bond 1-10 Year Index ETF provides unique access to the Chinese fixed income market, focusing on RMB denominated bonds from the Chinese government and China’s so-called policy banks, according to ETF Strategy.
- Lyxor US$ 10Y Inflation Expectations UCITS ETF
One of the most popular new ETFs launched in 2016, pulling in more than £325 million, this new Lyxor ETF solves a major problem with most inflation linked bond exposures—during periods of inflation, banks often raise interest rates, driving down the price of bonds. This ETF hedges out that interest rate risk, while retaining the upside inherent in inflation-linked bonds.
- iShares € Corp Bond Sustainability Screened 0-3yr UCITS ETF
This ETF sits at the center of the rising ESG trend, applying standard ESG screens from MSCI onto the fixed income market. It also excludes the debt of firms involved in the business of controversial weapons. Investors have rewarded the fund with more than 330 million euros in investment.
- iShares Fallen Angels High Yield Corporate Bond UCITS
Fallen angel bonds—investment grade bonds that have been recently downgraded to junk status—had an amazing year in 2016, and studies suggest they tend to outperform the market. This fund captures that exposure for investors at a low cost.
- Vanguard USD Emerging Markets Government Bond UCITS ETF
With investors looking further afield for yield, the Vanguard USD Emerging Markets Government Bond UCITS ETF broke new ground by charging just 0.25% in annual fees, making it the most competitively priced ETF in the space at the time.