iShares lists, re-lists and cross lists
iShares is listing three new ETFs on the London Stock Exchange while re-listing another, in a piece of corporate acrobatics.
- iShares Digital Security UCITS ETF (LOCK, SHLD)
- iShares Euro Corp Bond SRI UCITS ETF (SUOE)
- iShares Broad USD High Yield Corporate Bond UCITS ETF (HYUS)
- iShares Euro Floating Rate Bond UCITS ETF (EFRN)
LOCK will track the booming cyber security sector and follows in the footsteps of the successful $634m L&G Cyber Security UCITS ETF (ISPY). LOCK will track the STOXX Global Digital Security Index (factsheet here), which is made up of companies involved in the transmission and safeguarding of sensitive data, and data centres (including at least one REIT). It will charge a fee of 0.40%.
SUOE will track the debts of European corporates while building in an ESG screen in selecting which companies’ debts it buys (page 50.) The ESG screen rules out the usual suspects – porn, tobacco, weapons – but also excludes alcohol and GMO for good measure.
EFRN, which will also be listed in Germany under the same ticker, will track European floating rate notes. It’s the first European floating rate note ETF that we are aware of. Its index will be the Bloomberg Barclays EUR FRN Corporate 2% Issuer Cap Bond Index.
HYUS ( from what we can tell) offers something different. From what we can tell, it appears to be a relisting – under a different index and at a lower fee – of iShares existing US dollar higher yield ETF (IHYA). The old fee was 0.50% and the old index provider was Markit iBoxx. The new fee will be 0.25% and the new index provider ICE BofAML. It’s interesting that iShares chose to change the index and fee via a whole new listing rather than a shareholder resolution.