A new exchange traded fund from the PowerShares Source product family has been tradable via Xetra and Börse Frankfurt since Thursday…..
The bond index ETF enables investors to participate in the performance of US preferred shares.
Name: PowerShares Preferred Shares UCITS ETF EUR Hgd Dist
Asset class: bond index ETF
Ongoing charges p.a.: 0.55 percent
Distribution policy: distributing
Reference index: BofA Merrill Lynch Diversified Core Plus Fixed Rate Preferred Securities Net Total Return Index
These are fixed-rate, hybrid capital instruments (preferred securities) denominated in US dollars and issued in the US domestic market.
Such securities must have a minimum rating of B3 and an investment-grade country rating.
This share class uses a hedging strategy to hedge the exchange rate risk between the US dollar and the euro.