VanEck Expands Fixed Income Range with US Fallen Angels ETF Launch

VanEck has introduced a new exchange-traded fund (ETF) named the “VanEck US Fallen Angel High Yield Bond UCITS ETF (USFA),” which is listed on the London Stock Exchange and Deutsche Boerse. This ETF aims to track the ICE US Fallen Angel High Yield 10% Constrained index, offering exposure to 166 US dollar-denominated corporate bonds that were previously rated as investment-grade at issuance. USFA rebalances monthly and comprises bonds from the US domestic market with at least one year to maturity. The move broadens the selection of fallen angels ETFs available in Europe, with BlackRock’s iShares Fallen Angels High Yield Corp Bond UCITS ETF being the largest. VanEck already operates a similar strategy with assets under management of $2.8 billion. This launch reflects VanEck’s active year in ETF development, following the introduction of other thematic ETFs earlier in the year.