Global X ETFs Reduces Fees for USTB and USHY ETFs Amid Renewed Investor Confidence in Bonds
Global X ETFs has reduced the annual management fees for two of the company’s fixed income ETFs: the Global X USD High Yield Bond ETF (Currency Hedged) and the Global X US Treasury Bond ETF (Currency Hedged).
The USHY ETF sees a reduction from 0.40% down to 0.30% a year, enabling opportunistic Australian investors to tap into a high-yield market with increased cost efficiency.
Meanwhile, the USTB ETF management fee will be lowered from 0.20% to 0.19%, offering a means of further stability to investors’ portfolios.
Chief executive, Evan Metcalf said this fee reduction comes amid a resurgence in demand for bonds and demonstrates Global X’s commitment to providing investors with intelligent, and timely solutions.
“We are pleased to offer competitive rates to Australian investors seeking to leverage favourable fixed-income opportunities presented by global economic conditions,” Metcalf said.
“We observe increased investor interest in the role of bonds within a portfolio, driven by historically robust yields, and a positive market outlook further fuelled by the anticipation of the US Federal Reserve initiating rate reductions in 2024.
“Meanwhile, US Treasury bonds, the world’s most heavily traded, offer stabilising properties in market environments anticipating peak growth and heightened challenges for equities.”
The USHY ETF tracks the Solactive USD High Yield Corporates Total Market Index (AUD hedged). The index is market capitalisation-weighted and mirrors the performance of high-yield-rated corporate bonds issued in US dollars. The fund provides Australian investors with a simple way to invest in high-yield bonds from developed countries across the world, while also diversifying their portfolio with global exposure.
The USTB ETF is a passively managed fund, which tracks the iBoxx $ Treasuries Index (AUD hedged). The index is market capitalisation-weighted and mirrors the performance of debt issued by the US government. The fund offers Australian investors the opportunity to explore global market exposure while generating income and diversifying their portfolio.
