BlackRock rolls out new income ETF

BlackRock Asset Management has announced the launch of the iShares DEX Floating Rate Note Index Fund, which seeks to generate income and limit potential interest rate risk by investing in a regularly rebalanced portfolio of floating-rate bonds.

To mark the launch, BlackRock is waiving the management fees on the fund until June 30, 2012.

“Investors’ appetite for risk is low but they still want to maximize yield,” said Mary Anne Wiley, managing director, head of iShares distribution at BlackRock Canada. “Our new fund is designed to capture yield in low duration securities while managing interest rate risk.”

The fund began trading on the TSX under the ticker symbol XFR today. It is the twelfth income-oriented ETF offered in Canada by BlackRock. There are currently $6.9 billion of assets under management (AUM) in the TSX-listed iShares fixed income ETF suite.

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