BlackRock's iShares unveils AAA government bond ETF

BlackRock's iShares has launched the first ETF to offer exposure to global AAA and AA rated government bond exposure.

The Global Government AAA-AA Capped Bond fund invests in fixed-rate local currency bonds, issued by developed countries worldwide which are rated AA3 or higher using the median of ratings given by credit rating agencies Fitch, Moody's and Standard & Poor's. A cap on the fund has been applied so no AAA-rated country makes up more than 20% of the portfolio, and no AA-rated country accounts for more than 10%. The fund is listed on the London Stock Exchange, is physically backed and has a total expense ratio of 0.2%. As at 31 August 2012, the index contained bonds issued by 19 countries d...