Global X ETFs Australia has reduced the management fees of its two US fixed-income funds.
Effective from 10th October 2022 the fees for the following ETFs have been reduced:
- Global X US Treasury Bond ETF (Currency Hedged) (USTB) has been lowered from 0.30% to 0.20% p.a.
- Global X USD High Yield Bond ETF (Currency Hedged) (USHY) has been lowered from 0.55% to 0.40% p.a.
The company said in its product update:
“Following our rebrand from ETF Securities to Global X ETFs, we have leveraged the resources of our global ETF network and are determined to pass these benefits on to our clients.
“Global fixed income markets are difficult to navigate in the current environment of inflation and coordinated central bank rate action. However, there are opportunities to strategically allocate to fixed income to capitalise on yields and subsequent income. Broad index ETFs such as USTB and USHY are popular tools for many investors to gain cost-effective exposure to this area of the market.”
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USTB – Treasury Bonds tracks the iBoxx $ Treasuries Total Return Index hedged into Australian dollars. The index is market capitalisation weighted and tracks the performance of bonds issued by the US government.
USHY – High Yield Bonds tracks the Solactive USD High Yield Corporates Total Market Index hedged into Australian dollars.
Independent ETF provider ETF Securities announced its corporate rebrand to Global X ETFs last month. The rebrand follows Mirae Asset and Global X’s acquisition of ETF Securities Australia in June 2022.
The two Global X ETFs were launched to Australian investors in July to provide more options for investing in the fixed income market, particularly those looking for access to pure-play investments in US Treasuries.
