WisdomTree EU Bonds:
A rising new player in
European bond markets
2020 was a year of many new challenges for economies around the world. The Covid-19 crisis prompted the European Union (EU) to consider new tools and a more unified approach to tackle the effects across the diverse economies of member states within the European economy.
As a response, the European Commission on behalf of the EU has put forward two new programmes, SURE and NextGenerationEU, with a total of around €850 billion to be funded by European Union bonds. The programs, together with the EU long-term budget 2021-2027, form the largest stimulus package ever financed through the EU budget totalling €1.8 trillion.
With the expected EU bond issuance over the coming years, European Union bonds are set to become the second largest AAA* rated issuer in Europe.
*European Union credit rating is noted as AAA by Fitch in the European Commission Investor Presentation dated January 2021.
Introducing WisdomTree’s European Union Bond strategy
The WisdomTree European Union Bond Strategy gives investors market access to European Union (EU) bonds by capturing EU bond issuance which is fully or partially designated to SURE and NextGenerationEU in a transparent and highly liquid UCITS Exchange Traded Fund (ETF) vehicle.
New issuance of European Union bonds under SURE are social bonds and a portion of issuance under NextGenerationEU could also fall under the social or green bond framework, making it interesting for Environmental, Social and Governance (ESG) compliant investing.
Find out more by accessing our investment case.
Key features of WisdomTree’s European Union Bond strategy
Source: WisdomTree. Liquid refers to the credit quality of the underlying basket of bonds. *European Union credit rating is noted as AAA/Aaa/AA by Fitch, Moody’s and Standard&Poors, respectively in the European Commission Investor Presentation dated January 2021. You cannot invest directly in an index. Historical performance is not an indication of future performance and any investments may go down in value.