A new active ETF issued by PIMCO Fixed Income Source has been tradable in the XTF segment on Xetra since Monday.
ETF name: PIMCO Covered Bond Source UCITS ETF
Asset class: active bond index ETF
ISIN: IE00BF8HV717
Total expense ratio: 0.38 percent
Distribution policy: non-distributing
Benchmark: Barclays Euro Aggregate Covered 3% Cap Index
The PIMCO Covered Bond Source UCITS ETF enables investors to participate in the performance of globally issued covered bonds via an actively managed ETF. Covered bonds are characterised by hedges against issuer default risk via additional investments, with the investor entitled to the securing assets in the case of default.
At least 80% of the investment portfolio underlying the ETF consists of covered bonds. These assets consist of high-quality private mortgage loans, public sector loans, or a mix of the two. Up to 20% of the sub-fund may be invested in corporate bonds (except those of financial institutions) that have at least an S&P AA- rating.
The PIMCO Covered Bond Source UCITS ETF is being traded on Xetra for the first time. A management fee of 0.38% is due the first year.
The product offering in Deutsche Börse’s XTF segment currently comprises a total of 1,038 exchange-listed index funds, making it the largest offering of all European stock exchanges. This selection, together with an average monthly trading volume of €10 billion, makes Xetra Europe’s leading trading venue for ETFs.
