European fixed income ETF provider Tabula Investment Management has unveiled its first product following the launch of the firm in May.
The Tabula European Performance Credit UCITS ETF will offer investors exposure to the European corporate credit market, while aiming to remove the interest rate risk of traditional corporate bond indices.
Tracking the iTraxx European Performance Credit index, the ETF is listed on the London Stock Exchange and has an ongoing charges figure (OCF) of 0.50%.
Rebalanced monthly, the index invests primarily in investment grade securities and some high yield.
Michael John Lytle, CEO of Tabula and former Source founder, commented: "European corporates look healthy and credit is reasonably priced but, with rate hikes on the horizon, not everyone wants the interest rate risk inherent in corporate bonds.
"Specialist credit managers can isolate and manage credit risk using credit default swap indices," he continued.
"This is a liquid and efficient market, but it is not accessible to all asset managers. Our new ETF gives you the same kind of control - precise credit exposure and the ability to increase or decrease it whenever you want to.
"To enhance yield, you typically need to reduce credit quality or increase duration. However, if you have a positive view on European credit, it makes sense to scale up that exposure instead."
Tabula is planning to expand its offering in a number of fixed income areas including investment grade, high yield, credit, inflation, bank capital, money markets, ESG strategies and Solvency II-efficient funds.
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