DWS follows BlackRock with launch of fixed maturity bond ETFs

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DWS has launched four fixed-maturity bond exchange traded funds, after rival BlackRock rolled out similar products in Europe earlier this year.

The Luxembourg-domiciled Xtrackers II Target Maturity Ucits ETFs, which aim to make regular quarterly payouts to investors and are liquidated at the end of their term, are available with fixed durations until September 2027, 2029, 2031 and 2033. They charge investors a total expense ratio of 0.12 per cent.

The four ETFs are listed in Frankfurt and are registered for sale across much of Europe, but not the UK.

They all track Bloomberg benchmarks and invest in euro-denominated, investment-grade corporate bonds.

This article was previously published by Ignites Europe, a title owned by the FT Group.

Simon Klein, global head of Xtrackers sales at DWS, said the new ETFs made it easier for income-focused investors to gain exposure to a diversified fixed-income portfolio that has many characteristics of a single bond.

He added that DWS planned to add more funds to its fixed-maturity bond ETF offering over time.

The launches come after BlackRock in August brought to market its first four-strong suite of fixed-term bond ETFs for European investors and expanded the offering in September with a further five new iBonds ETFs.

*Ignites Europe is a news service published by FT Specialist for professionals working in the asset management industry. Trials and subscriptions are available at igniteseurope.com.