OREANDA-NEWS.  The first ever European convertible bond ETF, from new issuer Structured Invest S.A. (a wholly-owned subsidiary of UniCredit Bank AG), has been tradable on Xetra since Wednesday. UniCredit subsidiary HVB sold its Indexchange ETF unit to Barclays in 2007. This new product marks UniCredit's return to the ETF market.

ETF name: UC Thomson Reuters Balanced European Convertible Bond UCITS ETF
Asset class: bond index ETF
ISIN: LU1199448058
Total expense ratio: 0.95 percent
Distribution policy: accumulating
Benchmark: Thomson Reuters Monthly Europe Focus Convertible Index

The UC Thomson Reuters Balanced European Convertible Bond UCITS ETF enables investors to participate for the first time in the performance of the European convertible bond market. The ETF provides diversified investment opportunities in large, liquid convertible bonds from European issuers in various sectors. The reference index comprises highly convex bonds only. High convexity is generally a desirable feature, as it means that the price of a bond will fall less sharply when interest rates rise and will increase more when rates fall compared with a lower convexity bond.

The product offering in Deutsche Börse’s XTF segment currently comprises a total of 1,065 exchange traded funds. This selection, together with an average monthly trading volume of around €13 billion, makes Xetra Europe’s leading trading venue for ETFs.

Xetra® and XTF® are registered trademarks of Deutsche Börse AG.