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ETF specialist iShares aims at bonds with eurozone range

Exchange traded product provider iShares has expanded its fixed-income range with the launch of eight single-country eurozone sovereign debt funds.

The funds will track a number of Barclays indices, investing in physical securities and offering exposure to euro-denominated fixed-rate government bonds.

The funds will only invest in bonds with a minimum time to maturity of one year and a minimum outstanding debt of £241.3m.

The firm has launched the iShares Barclays Austria treasury bond, iShares Barclays Belgium treasury bond, iShares Barclays Finland treasury bond, iShares Barclays France treasury bond, iShares Barclays Germany treasury bond, iShares Barclays Italy treasury bond, iShares Barclays Netherlands treasury bond and iShares Barclays Spain treasury bond funds.

The London-listed products have a total expense ratio of 0.2 per cent.

BlackRock head of iShares product development EMEA Axel Lomholt says: “Investors are allocating to fixed income in a more granular way than ever before. The single-country eurozone debt ETFs will allow them to invest and express their views in a more precise fashion.

“It remains our priority to build out our fixed-income product range and further funds will be developed in response to investor demand.”

Pilot Financial Planning director Ian Thomas says: “I think the appetite will be relatively limited at the moment among most IFAs. European sovereign debt markets are very volatile, so specialist products which offer intraday pricing will appeal to businesses and individuals who want to actively trade. However, most professional financial planners will not operate in this way.”

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