New bond ETFs from L&G on Xetra: access to corporate bonds with short duration

Since Thursday, two new exchange-traded funds from Legal & General Investment Management have been tradable via Xetra and Börse Frankfurt.

The L&G Corporate Bond ex-Banks Higher Ratings 0-2Y UCITS ETF tracks the performance of the J.P. Morgan Global Credit Index (GCI) Ultra Short ex Banks 2% Issuer Capped Index and provides an accumulating and currency-hedged share class.

Both ETFs offer access to a portfolio of short-duration corporate bonds denominated in euros or US dollars, excluding banks as issuers. The bonds have an investment grade rating and an outstanding volume of at least €300 million.

Environmental, social and governance guidelines are taken into account when selecting issuers. Companies with controversial business areas such as tobacco, weapons or thermal coal are excluded.

The product offering in Deutsche Börse's XTF segment currently comprises a total of 2,255 ETFs. With this selection and an average monthly trading volume of around €16 billion, Xetra is the leading trading venue for ETFs in Europe.