iShares launches short duration ETFs as investors eye rate rises

iShares has launched three ultra-short bond ETFs and two short duration bond ETFs as investors seek out new ways to protect themselves if interest rates start to rise.

The group said the new products are aimed at helping investors mitigate the risk of potential rate rises in developed market debt, while they should also provide an alternative to simply hiding in cash. The iShares Ultrashort Bond ETFs - which have euro, dollar and sterling share classes - are the first passive ETFs of their kind in the EMEA region and will be based on the recently launched Markit iBoxx Liquid Ultrashort indices. They invest in fixed and floating rate investment grade corporate bonds denominated in the above currencies, with the fixed rate bonds maturing between 0-12 ...