iShares Yield Plus ETF
iShares has launched the iShares Yield Plus ETF (IYLD) , an exhange traded fund which tracks a highly diversified customised corporate bond benchmark - the Bloomberg AusBond Credit and Floating Rate Note Ex Big 4 Banks Index.
iShares says by excluding Australia's major banks, the fund offers investors unique portfolio diversification benefits. It has a management fee of 0.12 per cent and targets a 0.75 -1.0 per cent yield margin over the RBA cash rate.
“Designed with investors’ needs in mind, [the fund aims] to provide attractive, stable income streams via exposure to a diversified portfolio of high-quality Australian investment grade corporate bonds. Investors will also benefit from investing in institutional quality ETFs that meet daily liquidity and transparency demands," Christian Obrist, head of iShares, Australasia, said.