iShares, the Exchange Traded Fund (ETF) arm of Barclays Global Investors has listed two new Exchange Traded Funds (ETFs) on Euronext Amsterdam, the “iShares € Covered Bond” and “The iShares S&P Emerging Markets Infrastructure fund”.
With the introduction of these new ETFs iShares is responding to growing investor demand for transparency and diversity amid continued market turmoil.
The “iShares € Covered Bond” provides investors with liquid exposure to a range of European covered bonds based on the Markit iBoxx € Covered index. The index currently contains 438 bonds, 95% AAA-rated, with an average annual yield of 4.51% and duration of 4.18 years (as at 28 January 2009).
“ETF trading is growing significantly; January was the second best month ever in terms of the number of transactions,” says Joost van der Does de Willebois, chairman of Euronext Amsterdam and member of NYSE Euronext Management Committee. “The launch of these new ETFs is a welcome response to the clear demand from investors for this type of investment.”
“ETFs have come of age in current volatile markets, where transparency and liquidity are critical, and where investment opportunities are not easy to find,” says Roel Thijssen, head of iShares Benelux.
“Covered bonds are secure because they have a preferential claim on a legally segregated pool of collateral assets. At the same time, strong economic fundamentals in emerging markets are a source of potential returns for investors.”
L.D.