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Laxman Pai, Opalesque Asia: Global investment manager BlackRock launched a new exchange-traded fund (ETF) designed to offer investors exposure to a globally diversified portfolio of government bonds.
According to a press note from the New York City-based investment management corporation, the iShares Global Government Bond USD Hedged Active ETF (GGOV) employs a currency hedge on non-U.S. bonds, aiming to increase the yield on those exposures when U.S. policy rates are elevated relative to their global counterparts.
GGOV is managed by the BlackRock Tactical Asset Allocation team, and its benchmark index is the Bloomberg Global Treasury USD Hedged Index. The expense ratio is 0.39%.
"USD-hedged global government bonds have historically generated higher yields with lower volatility compared to comparable US-only bond indices," said Tom Becker, lead portfolio manager of GGOV.
"Through the convenience of the ETF wrapper, GGOV aims to deliver our durable active investment process with this differentiated global benchmark. We believe that GGOV will be an important tool for many US asset allocators in the current environment of elevated inflation, large budget deficits, and rising issuance," Tom added.
As per the release, the global diversification across sovereign issuers in GGOV may help investors mitigate the rising exposures and risks of long-dated US Treasuries within many fixed-income allocations. GGOV employs a currency hedge on non-US bonds, aiming to increa...................... To view our full article Click here
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