CDS ETF

USA

An ETF that doesn’t remember 2008

Did you ever think that no-one should trust rating agencies after the 2008 financial crisis? Did you think credit default swaps were some of the most toxic sludge ever spewed out of Wall St? If so, this isn’t the ETF for you…

 

Principal Funds is listing a new actively managed ETF that both trusts rating agencies and uses credit default swaps. The Principal Investment Grade Corporate Active ETF (IG) will invest at least 80% of its assets in investment-grade corporate bonds “and other fixed-income securities,” the prospectus says. The fund will use rating agencies’ verdicts in deciding which bonds are investment grade.

 

IG backs up its corporate bond investments with a derivatives strategy. Specifically, IG invests in “treasury futures for hedging or to otherwise manage fixed income exposure, as well as credit default swaps, including buying and selling on individual securities or baskets of securities, to efficiently manage exposures to certain sectors or individual issuers,” the prospectus says.

 

Germany

Deutsche lists ESG Japan ETF

Deutsche Bank is listing a new Japanese ETF that builds in an ESG screen. The Xtrackers ESG MSCI Japan UCITS ETF (XZJP) will track the MSCI Japan ESG Leaders Low Carbon Ex Tobacco Involvement 5% Index, which tracks Japanese companies with high ESG characteristics and low carbon exposures, relative to their peers. CZJP charges 0.20%. 

 

China

Invesco Great Wall lists China A Shares ETF

Invesco’s China arm, Invesco Great Wall is listing a new A Shares tracking ETF in Shanghai, the Invesco Great Wall MSCI China A-share Guojitong ETF Fund (512280).