US investment giant Vanguard has launched three new fixed income exchange-traded funds (ETFs), bringing the number of bond funds launched by the firm in Europe this year to 10.
Vanguard U.S. Treasury 1-3 Year Bond UCITS ETF, Vanguard U.S. Treasury 3-7 Year Bond UCITS ETF and Vanguard U.S. Treasury 7-10 Year Bond UCITS ETF will complement the existing Vanguard U.S. Treasury 0-1 Year Bond UCITS ETF and the Vanguard USD Treasury Bond UCITS ETF, the firm said.
All three new funds will cost 5 basis points if using the unhedged share class, while the hedged version will cost double the price at 0.1%.
Mark Fitzgerald, head of product specialism at Vanguard Europe, said: “These new ETFs will allow investors to fine-tune their exposure to the US treasury curve with more precision, enabling them to align their allocation to their investment goals in a low-cost, high-quality format.”
Meanwhile, BlackRock has launched the BGF Global Securitised fund, investing in a diversified range of investment-grade assets including residential mortgage securities, asset-backed securities, collateralised loan obligations and commercial mortgage-backed securities.
It invests globally and is co-managed by Kate Galustian, Samir Lakhani, Ibrahim Incoglu, and Daanish Siddiqui, who have an average of 20 years investing experience.
Galustian said: “Securitised assets can offer attractive yields and low sensitivity to changes in interest rates compared to corporate bonds, which is ideal for those seeking diversification away from well-held fixed income asset classes.”