ETF provides access to sovereign bonds of OECD member states / Weighting based on fundamental factors…
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ETF Securities has offered its first smart beta bond index ETF on Xetra and Börse Frankfurt since Friday.
Name: ETFS Lombard Odier IM Global Government Bond Fundamental GO UCITS ETF
Asset class: bond index ETF
Total expense ratio: 0.30 percent
Distribution policy: accumulating
Benchmark: LOIM Fundamental Global Government Index
The ETFS Lombard Odier IM Global Government Bond Fundamental GO UCITS ETF gives investors access to the performance of fixed-rate bonds issued by the member state governments of the OECD. The bonds included in the reference index are denominated in the local currencies and have a residual maturity of at least one year. The first step sees the individual components weighted based on the issuers’ creditworthiness and ability to redeem their liabilities. The weightings are adjusted in a second step to give priority to countries with the highest liquidity and yields.
The product offering in Deutsche Börse’s XTF segment currently comprises a total of 1,137 exchange traded funds. This selection, together with an average monthly trading volume of around €15 billion, makes Xetra Europe’s leading trading venue for ETFs.