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Fixed maturity bond ETFs, the best

The evolving ETF landscape in Europe has seen the emergence of an intriguing new trend: fixed maturity bond ETFs.
This innovation gained momentum when BlackRock launched its iBonds lineup earlier this year, offering nine ETFs housing more than $1 billion in assets under management, including Europe's first fixed-maturity Treasury bond ETF.
Following this innovative move, other fund managers are following suit, and one of these has been DWS, which recently introduced a series of fixed maturity bond ETFs.
In this article we will see the new releases and analyze in detail one of the best products in the category.
DWS's 4 new issues DWS recently introduced a new series of ETFs focused on euro corporate bonds with fixed maturities, thus broadening investment opportunities for investors.
These four new ETFs, listed on Deutsche Boerse and maturing in September 2027, 2029, 2031 and 2033 respectively, offer a total expense ratio (TER) of 0.12%, ensuring a competitive management cost.
The Xtrackers II Target Maturity EUR Corporate Bond ETFs track the Bloomberg indices and have an SRI (Socially Responsible Investment) orientation, including hundreds of euro-denominated investment grade corporate bonds.
A distinctive feature of these ETFs is the management of liquidity during the final year of maturity.
During this period, maturing bonds are converted into low-risk euro money market securities on a monthly basis, helping to maintain a balanced risk profile.
Additionally, these ETFs are designed to distribute income quarterly, which can be advantageous for investors looking for regular cash flows.
The launch of this new range of ETFs by DWS is a direct response to rising interest rates and offers investors the opportunity to benefit from a higher rate environment in the coming years.
These instruments allow investors to access specific maturities of the bond market, at the same time benefiting from the typical advantages of ETFs, including diversification, transparency and liquidity of the wrapper, making them an attractive choice for those who want a targeted investment strategy in corporate bonds in euros.
read also The best multi-factor ETFs to invest in The best ETF by capitalization in the sector In this review, we will examine in detail the iShares iBonds Dec 2026 Term EUR Corporate UCITS ETF EUR (Dist), one of the best ETFs by capitalization on the market , exploring its features, performance, and how it positions itself in this evolving investment landscape.
iShares iBonds Dec 2026 Term EUR Corporate UCITS ETF EUR (Dist) The iShares iBonds Dec 2026 Term EUR Corporate UCITS ETF EUR (Dist) represents an attractive solution for investors looking for exposure to euro-denominated corporate bonds with a specific maturity and a focus on ESG (Environmental, Social, and Governance).
In this review, we will look at the main aspects of this ETF, which was launched on August 10, 2023 and is shown to have approximately €218 million in assets under management.
Investment Structure and Objective The objective of the ETF is to replicate the performance of the Bloomberg MSCI December 2026 Maturity EUR Corporate ESG Screened index.
This index is composed of corporate bonds with a concentrated maturity in 2026 and with an ESG filter, which makes it particularly attractive for investors sensitive to environmental, social and governance issues.
It should be noted that the ETF will be closed upon maturity of the underlying bonds, i.e.
December 2026.
read also 6 ETFs to bet on by the end of 2023 Replication and Management The iShares iBonds Dec 2026 Term EUR Corporate UCITS ETF EUR (Dist) uses a physical replication strategy via sampling.
This means the ETF invests in a portfolio of bonds that represent a significant selection of the underlying index, allowing investors to gain similar exposure at relatively low cost.
Additionally, the interest yield (coupon) generated by the underlying bonds is distributed to investors quarterly, providing regular cash flows.
Key Indicators The ETF offers a total annual expense (TER) of 0.12%, and is one of the cheapest products in its segment.
With assets of €218 million, it is also one of the largest ETFs tracking the Bloomberg MSCI December 2026 Maturity EUR Corporate ESG Screened index.
This fund size can help ensure good liquidity and tight bid-ask spreads, making the ETF accessible to investors of different sizes.
read also This ETF had a return of 40% in 3 years Performance and Yield Unfortunately, at the time of writing this review, there is no data available on the 1-year performance of the ETF.
However, in the previous months, the ETF has shown a positive performance, with a monthly return of +1.20% in the last month and +1.67% in the last 3 months.
It should be noted that the ETF has also proven to manage risk effectively, with a maximum drawdown since inception of -0.94%.
Bottom line The iShares iBonds Dec 2026 Term EUR Corporate UCITS ETF EUR (Dist) represents an attractive option for investors seeking exposure to European corporate bonds maturing in 2026 and with an ESG focus.
With a low TER, significant asset management and a quarterly distribution of returns, the ETF offers an attractive alternative to diversify your portfolio and benefit from opportunities in the Euro bond market.
However, investors should note that the ETF will be closed upon maturity of the underlying bonds, which may impact their long-term investment strategy.
Before investing, it is always advisable to consult a financial advisor to evaluate how this ETF fits your needs and investment objectives.
read also Here is the best ETF on Italian SMEs 2023 read also 3-year government ETFs, here are the top performers Disclaimer The information and considerations contained in this article must not be used as the sole and main support on the basis of which to make decisions relating to investments .
The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk appetite and his time horizon.
The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation for public savings.

Author: A.W.M.

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