Lyxor ETF has launched a range of yield curve ETFs with four new listings across Europe…
Each of the four new ETFs – the first of their kind in Europe – is designed to help investors express their views on expected changes in the shape of the US Treasury and German Bund yield curves, two key benchmarks for interest rates.
Against the backdrop of increasing global economic uncertainty and with all eyes on future central bank action, the new funds provide investors with innovative tools to take a stance on crucial drivers of financial markets.
The Lyxor US Curve Steepening 2-10 UCITS ETF, allows investors to potentially profit from an increase in the yield differential between 2Y and 10Y US Treasuries, known as a ‘steepening’ of the yield curve, within a simple and transparent ETF vehicle.
Lyxor’s other new ETFs allow investors to express the opposing view – that the 2-10Y portion of the US Treasury yield curve will flatten, via the Lyxor US Curve Flattening 2-10 UCITS ETF – as well as gain equivalent exposures to the 2-10Y portion of the German Bund yield curve via the Lyxor EUR Curve Steepening 2-10 UCITS ETF and the Lyxor EUR Curve Flattening 2-10 UCITS ETF.
All four ETFs come with an annual management fee (Total Expense Ratio) of 0.30%.
Due to the high multiplier effect of these funds, they are aimed at professional investors with good knowledge and experience of financial markets, and best held for short to medium term periods