Deutsche Börse adds more fixed-income ETFs

Deutsche Börse has added three more bond exchange-traded funds (ETFs) as part of its XTF segment.

Issued by German ETF provider, Indexchange, the three ETFs are based on indexes from the eb.rexx Government Germany index family with different bond maturity classes (1.5 years to 2.5 years, 2.5 years to 5.5 years and 5.5 years to 10.5 years). The eb.rexx Government Germany indexes are calculated by Deutsche Börse from prices traded in German government bonds on Eurex's bonds platform.

ETFs let investors gain exposure to a sector using a single security. The cash instruments track an index or replicate the performance of a basket of stocks or bonds, and are traded on an exchange like a regular share. The expansion of the ETF universe into the bond market increases indexing opportunities to include bonds of different maturities and credit quality.

The first fixed-income ETF in Europe, the eb.rexx Government Germany EX, was launched by Deutsche Börse in February. In March, it was followed by the iBoxx €Liquid Corporates ETF with a focus on corporate bonds. According to the bourse, these two ETFs had approximately €870 million in assets under management at the end of May.