BlackRock lists a new UK Gilts iShares ETF on the London Stock Exchange

Blackrock: One new exchange traded fund issued by iShares ETF have been tradable on the London Stock Exchange

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By ETFWorld.co.uk

iShares UK Gilts 0-5yr UCITS ETF

The Share Class is a share class of a Fund which aims to achieve a return on your investment, through a combination of capital growth and income on the Fund’s assets, which reflects the return of the FTSE UK Conventional Gilts – Up to 5 Years Index, the Fund’s benchmark index.

The Share Class, via the Fund is passively managed and aims to invest so far as possible and practicable in the fixed income (FI) securities (such as bonds) that make up the Index and comply with its credit rating requirements. If the credit ratings of the FI securities are downgraded, the Fund may continue to hold them until they cease to form part of the Index and it is practicable to sell them.

The Index measures the performance of Sterling denominated gilts (i.e. bonds) issued or guaranteed by the British government with zero to five years remaining to maturity (i.e. the time until they become due for repayment) and which are quoted on the London Stock Exchange, other than index-linked bonds. These FI securities will, at the time of inclusion in the index, be investment grade (i.e. meet a specified level of creditworthiness) so long as the United Kingdom maintains its investment grade credit rating. They will pay income according to a fixed rate of interest.

The Fund uses optimising techniques to achieve a similar return to its Index. These may include the strategic selection of certain securities that make up the Index or other FI securities which provide similar performance to certain constituent securities. These may also include the use of financial derivative instruments (FDIs) (i.e. investments the prices of which are based on one or more underlying assets). FDIs may be used for direct investment purposes. The use of FDIs is expected to be limited for this Share Class.

Source: ETFWorld.co.uk