Defensive Junk


BNP launches “defensive” junk bond ETF

In what may sound like a contradiction, BNP Paribas is listing a new European junk bond ETF that builds in a defensive strategy by buying derivatives.


The BNP Paribas Easy High Yield Europe Defensive UCITS ETF (HYDI) tracks the BNP Paribas Equity Europe Defensive TR Index, which measures the performance of European high yield corporate bonds. 


The defensive side of things come from buying options that allow HYDI to sell the same or similar junk bonds to what its investing in. More detail on HYDI can be found here on BNP’s website.  


Vanguard cross-lists Euro Stoxx tracker into Switzerland

Vanguard is cross-listing its Euro Stoxx 50 tracker over into Switzerland. The Vanguard Euro Stoxx 50 UCITS ETF (VX5E) tracks the popular European benchmark physically and charges 10bps.