BlackRock lists a new US Treasury iShares ETF on the LSE

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 $ Treasury Bond 7-10yr 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 Funds assets, which reflects the return of the ICE U.S. Treasury 7-10 Year Bond Index, the Funds benchmark index. The Share Class also aims to reduce the impact of exchange rate fluctuations between the Fund’s underlying portfolio currencies and Euro on your returns.

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, combined with foreign currency contracts for currency hedging. 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 offers exposure to US government bonds with a remaining maturity (i.e. the time from issue until they become due for repayment) from 7 to 10 years and a minimum amount outstanding of $300 million at the time of inclusion in the Index. They will pay income according to a fixed rate of interest and will, at the time of inclusion in the Index, be investment grade (i.e. meet a specified level of creditworthiness)

Source: ETFWorld.co.uk