db X-trackers Launches First USD Corporate Bond ETF

The fund costs 0.2 percent and tracks liquid investment grade bonds

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Editor, etf.com Europe
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Reviewed by: Rachael Revesz
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Edited by: Rachael Revesz

 

db X-trackers has launched an exchange traded fund (ETF) that tracks a pool of liquid and investment grade corporate bonds, expanding its range of fixed income funds for investors.

The db X-trackers Barclays USD Corporate Bond UCITS ETF (ticker XDGU) listed in Germany and has annual fees of 0.2 percent. The underlying index is made up of 1,460 USD-denominated bonds, with the vast majority issued in the U.S. There is a range of duration on the bonds, with a quarter short dated and a quarter invested in bonds that expire in between 15 and 25 years.

All the bonds are used from industrial, utility or financial companies. This launch is the first USD-denominated corporate bond ETF from db X-trackers, adding to its GBP and EUR-denominated funds.

The provider also brought to market a MSCI Europe Index UCITS ETF that distributes dividends and charges 0.3 percent per year.

The provider has brought several ETFs to market this year, including an equal-weight FTSE 100 ETF, Europe’s first China government bond ETF and a Japanese Nikkei 400 ETF.

 

Rachael Revesz joined etf.com in August 2013 as staff writer. Previously an investment reporter at Citywire, she has a background in writing content for retail financial advisors and has covered a wide range of subjects in finance. Revesz studied journalism at PMA Media, which has since merged with the Press Association. She also holds a B.A. in modern languages from Durham University, as well as CF1 and CF2 financial planning certificates from the CII.