Short Duration


Hartford lists actively managed short duration bond ETF

Pennsylvania-based Hartford Funds is listing an actively managed short duration bond ETF. The Hartford Short Duration ETF (HSRT) can invest in the full spectrum of bonds. From the murky — including junk bonds, mortgage-backed CDOs, “Rule 144A” securities and “fixed income related derivatives”. To government debts and investment-grade bonds.

HRST caps the amount of junk it can eat at 35% and caps foreign exposure at 25%.

HRST will achieve short duration and manage interest rate risk by using derivatives including treasury futures, options and interest rate swaps. It will maintain a dollar-weighted average duration of less than 3 years.


BetaShares lists Aussie corporate bond ETF

Mirae-backed Betashares is listing a new ETF that offers exposure to the bonds of Aussie corporates. The BetaShares Australian Investment Grade Corporate Bond ETF (CRED) will invest in AUD denominated investment-grade corporate bonds with a term to maturity between 5 and 10 years.

CRED will achieve its exposure by tracking the Solactive Australian Investment Grade Corporate Bond Select TR Index, which includes up to 35 bonds selected based on option-adjusted spreads. (The index factsheet is available here.)

To qualify in the index, debts must be senior, issued in Australia, have fixed coupons and at least $250 million outstanding.

The index puts a cap on each issuer at 7%.


Yuanta lists A Shares tracker

Taiwan’s biggest ETF issuer Yuanta is listing a China Tracker. The Yuanta MSCI China A ETF (00739) will track the MSCI China A Shares index.


Invesco renames European ETFs

Invesco is rebranding its Source and PowerShares offerings. Every European ETF that has, to date, appeared under either Source or PowerShares brand name will now be called the “Invesco…. UCITS ETF”. We wonder if they’ll do something similar in the US, where all the products currently carry the PowerShares brand.