iShares releases swap-based ETFs in UK

iShares has unveiled its inaugural UK range of swap-based ETFs, based on the multiple swap counterparty model, to provide exposure to India and Russia.

The ETF issuer says this development comes in response to growing investment interest in difficult to access markets, where the benchmark indices can be hard to traditionally replicate with low tracking error. iShares has previously only launched fully-replicated ETFs, with the exception of a small range of 19 products listed in Germany, and says this swap-based fund launch is part of an "evolution" in the industry. As part of this evolution, the new swap-based platform uses a range of counterparties, while the ETFs are over-collateralised and disclose collateral holdings, swap costs ...