New ishares eurozone LT bond etf

[koekebakker]

Hi all,

I noticed a new bond etf which might be interesting for EU-PP investors:

iShares Euro Government Bond 20yr Target Duration UCITS ETF

It has a duration of 18.88y and it only holds bonds from Germany, France, Netherlands, Belgium, Finland and Austria.

The etf is still tiny though: 7 million.

[European Son]

Yes, I posted details about it early this year. E20Y is the ticker. I have bought some of it, seems the solution for LT bond component in the Eurozone. Its volatile, but thats what you want. I need to add more of it to average in. The yield on it is pathetic, will check the 2nd div payment in DEC to see if its any better.

[Lang]

If the ETF's assets don't pick up, is it possible that they will close it and force you to redeem the shares?

[koekebakker]

That's certainly possible.

http://etf.about.com/od/etfbasics/a/Wha ... -Doors.htm

I do hope it picks up as it seems to be an almost perfect etf for a euro-PP.

[frugal]

Hello,

great topic and advice!

I think that we, europeans, should concentrate our topic only in one, there was one with subject EUPP family. No?

Or to the administration: can you open a subforum for EUPP?


Thank you all.



 

[Thomas Hoog]

Thanks, I saw it too.
Did you analyse the difference with iShares Euro Government Bond 15-30yr UCITS ETF (IBGJ).
The duration seems longer (better ?!) but the yield is lower ?

[koekebakker]

The yield is lower as it holds less risky assets, no Italian bonds for example.

[Thomas Hoog]

Thx, thought so. Always the choise between risk and yield. I think that if they don't drop Greece, they certainly won't exit Italy.

[koekebakker]

Thx, thought so. Always the choise between risk and yield. I think that if they don't drop Greece, they certainly won't exit Italy.

Don't think so too. I'm not really afraid that Italy or Spain will leave the eurozone anytime soon. The main issue in my opinion with holding bonds from those countries is that during a flight-to-quality crisis they might react opposite to German/Dutch bonds.

[Thomas Hoog]

Funny, an other Dutch member. Are there more Dutch people active here ?

[frugal]

Hi,

if some counties leave the EURO zone what will happen to a ETF PP portfolio?


Regards