Invesco PowerShares Launches Three New ETFs

Robbie Lawther

21 November 2017

has launched three exchange-traded funds in a bid to meet strong demand among European investors for low-cost fixed income vehicles, it said.

The PowerShares USD Corporate Bond UCITS ETF, PowerShares Euro Corporate Bond UCITS ETF and PowerShares Emerging Markets USD Bond UCITS ETF will build on PowerShares’ European suite of nine active-and passively-managed fixed income ETFs co-managed by PIMCO, as well as the PowerShares US High Yield Fallen Angels UCITS ETF, the firm said in a statement.

The PowerShares USD Corporate Bond UCITS ETF will track the Bloomberg Barclays USD Investment Grade Corporate Liquidity-Screened Bond Index. The average rating of underlying assets is A-, with industrials accounting for around 60 per cent of sector allocation, and a yield to maturity of 3.11 per cent.

The PowerShares Euro Corporate Bond UCITS ETF will track the Bloomberg Barclays Euro Corporate Index. The average rating of underlying assets is A-, with industrials accounting for just over half of the sector allocation, and a yield to maturity of 0.61 per cent.

The PowerShares Emerging Markets USD Bond UCITS ETF will track the Bloomberg Barclays Emerging Markets USD Sovereign Bond Index. The average rating of underlying assets is BB+, with a yield to maturity of 4.87 per cent. The top five country holdings are Argentina, Indonesia, Turkey, Mexico and Saudi Arabia.

The firm’s European fixed income ETFs are managed by a team of six, led by Jeff Kernagis. In October, the firm expanded its range of short-term high yield ETFs with the launch of the PIMCO Euro Short-Term High Yield Corporate Bond Index Source UCITS ETF.

Invesco PowerShares has $29.8 billion in fixed income assets under management.