AXA Investment Managers (AXA IM) strengthens its range of fixed-income ETFs with the launch of the AXA IM ICE US Treasury +25Y UCITS ETF, which began trading yesterday, and the AXA IM ICE US Treasury 0-1Y UCITS ETF, set to launch later this month. According to the asset manager, the first of these vehicles aims to replicate the performance of the ICE® US Treasury 25+ Year Bond Index, net of management fees, both in rising and falling markets.
It provides exposure to U.S. sovereign debt in its domestic market, denominated in U.S. dollars. With the longest duration available in the market, this ETF offers a unique proposition for investors seeking long-term exposure to fixed-income markets.
On the other hand, the AXA IM ICE US Treasury 0-1Y UCITS ETF aims to replicate the performance of the ICE® BofA 0-1 Year US Treasury Index, net of management fees, both in rising and falling markets. It provides exposure to U.S. sovereign debt with a maturity of less than one year, denominated in U.S. dollars. Due to its short maturity, this dynamic component allows investors to invest their cash in U.S. dollars on a short-term basis.
“U.S. Treasury bonds are recognized as a safe haven and a staple for many investors, primarily due to their high liquidity. By offering our current clients, as well as potential clients, two ETFs positioned at opposite ends of the curve, these products complete our range of fixed-income ETFs, providing investors with dynamic tools to build their portfolios. This allows them to easily capture the ups and downs of U.S. interest rates at a low cost,” commented Olivier Paquier, AXA IM’s Global Head of ETF Sales.
The asset manager highlights that the Total Expense Ratio (TER) for each ETF will be 0.07%, excluding transaction fees charged by intermediaries. Additionally, the ETFs will be available in Germany, Austria, Denmark, Spain, Finland, France, Italy (limited to institutional investors until listed in Italy), Liechtenstein, Luxembourg, Norway, the Netherlands, and Sweden.