BlackRock Australia has announced its intent to launch the iShares U.S. Treasury Bond (AUD Hedged) ETF (IUSG). Priced at 15bps, which is 25% cheaper than the nearest competing ETF in Australia, the launch furthers our commitment to expand the local iShares product suite of low-cost building blocks for Australian advisers and investors. It’ll list later this month.
iShares U.S. Treasury Bond (AUD Hedged) ETF (IUSG) will be benchmarked to the ICE US Treasury Core Bond AUD Hedged Index. Australian investors will gain exposure to a portfolio of bonds issued by the U.S. government, ranging from 1 to 30-year maturities. Investors generally seek to invest in U.S. Treasuries as a source of diversification and increasingly for a stream of income in the current rate environment.
Chantal Giles, Head of Wealth, BlackRock Australasia said, “The announcement of our intent to launch Australia’s lowest-cost U.S. Treasury ETF reflects our commitment to lead the market in providing Australian advisers and investors with greater access to the global bond market on the local exchange.
“Australian investors are increasing using fixed income ETFs as important tools to help navigate market uncertainty and to take advantage of the highest yields seen in years. Today’s announcement will ensure they have affordable and efficient access to a portfolio of U.S. Treasuries that are among the most liquid securities in the world.”
Tamara Stats, iShares ETF and Index Investments Specialist, BlackRock Australasia said, “Australia advisers and investors can consider adding US Treasuries alongside Australian Treasuries as an additional portfolio diversification tool. US Treasury exposure also gives investors access to an income stream, presently at multi-year highs.
“As the pioneer of bond ETFs globally, we are pleased that the upcoming addition to our local iShares product suite will enable us to offer more fixed income ETFs to Australian advisers and investors than any other issuer in the market.”