Lyxor launches short-term high yield bond ETF

TER of 0.30%

Lyxor Asset Management has launched a short-term high yield bond exchange-traded fund, the Lyxor BofAML $ Short Term High Yield Bond UCITS ETF, while also offering a euro version.

The ETF has a total expense ratio (TER) of 0.30% while the monthly hedged version of the US dollar product has a TER of 0.40%. The monthly hedged and euro versions will be available from 18 July. It will select bonds with duration of between one and three years, which the firm said will offer investors protection against rising interest rates. Last month, the Federal Reserve raised rates by 0.25%, while indicating it plans to hike once more this year. The Bank of America Merrill Lynch indices, which the ETFs track, provide exposure to 248 bonds in the US dollar version and 93 bo...