MTS Indices, a leading provider of European bond indices, has licensed its MTS France and MTS Italy Government Bond 1-3 year Indices to Lyxor to underlie two new sovereign bond ETFs, the Lyxor ETF MTS 1-3Y France Government Bond (MF13) and the Lyxor ETF MTS BTP 1-3Y Italy Government Bond (MI13).
The Lyxor ETF MTS BTP 1-3Y Italy Government Bond (MI13) offers exposure to MTS-listed sovereign debt instruments issued by the Italian government that have more than €2 billion outstanding and a maturity of between one and three years.
The indices track the performance of all MTS-listed sovereign debt instruments issued by the French and Italian governments that have more than €2 billion outstanding and a maturity of between one and three years.
The data underlying MTS Indices is drawn from real-time tradable prices on MTS, the leading electronic marketplace for cash bond trading across Europe.
The availability of executable bond prices from the underlying MTS market enables MTS Indices to offer a level of transparency and replicability that is unique in the bond markets.
Jack Jeffery, CEO of MTS, said: “We are delighted that Lyxor has again chosen to create ETFs based on MTS Government bond indices. MTS France and MTS Italy Government bonds indices continue to provide key benchmark tools for bond investors and Lyxor’s new instruments are a further demonstration of this.”
Nizam Hamid, Deputy Head of Lyxor ETFs, said: “Lyxor is pleased to offer investors, through its new government bond ETF products, the opportunity of a direct and precise exposure to front-end debt instruments of two major Eurozone economies based on independent, accurate and well-established indices provided by MTS.”
The new funds have been listed on NYSE Euronext and come with an annual fee of 16.5 bps.
For investors favouring funds listed on the London Stock Exchange, the iShares Barclays France Treasury Bond ETF (SFRB) and iShares Barclays Italy Treasury Bond ETF (SITB) offer exposure to euro-denominated government bonds issued by France and Italy, respectively. Eligible bonds must have a minimum remaining time to maturity of one year and a minimum amount outstanding of €300 million. [iShares rolls out 8 London-listed single-country Eurozone bond ETFs].