iShares, the exchange-traded funds (ETF) platform of asset management firm BlackRock, has launched two new currency-hedged fixed income fund.
The newly launched funds are: iShares Global High Yield Corp Bond GBP Hedged Ucits ETF (GHYS), and iShares Global Corporate Bond EUR Hedged Ucits (CRPH).
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The two physically-replicated, monthly funds listed on London Stock Exchange aim to reduce the impact currency fluctuations can have on returns when investing in fixed income globally.
It is claimed that the newly launched funds are designed to mitigate the risk investors are exposed to when there are fluctuations between the funds’ base currency and the currency in which the underlying assets are denominated.
Stephen Cohen, head of investment strategy at iShares EMEA, said: "We’re seeing a long-term trend for investors to diversify their fixed income allocations globally whilst at the same time there’s also been heightened volatility in FX markets.
"The funds are our first currency hedged bond ETFs in Europe and build on our existing range of European currency hedged equity ETFs.
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By GlobalData"They enable investors to hedge the currency of their investment returns in a single transaction without having to monitor and maintain a separate currency hedge," added Cohen.
The GBP hedged and EUR hedged funds have a total expense ratio of 0.55% and 0.25% respectively.
