iShares Plans To Add High Yield ETFs, Global X Files For “Super Income” Funds

by on February 17, 2012

Equity markets have endured another wild week as investors have digested mixed news on all fronts; encouraging economic data at home continues to restore confidence in the domestic recovery, while Euro zone debt woes have cooled off considerably, although uncertainties still remain. iShares continues to ramp up activity on the product development front with several exciting proposals to add junk bond and high yield ETFs to the firm’s already impressive lineup [see iShares Beefs Up Bond ETF Lineup]. Global X has also taken steps this week for beefing up its list of offerings with the addition of three “super income” ETFs.

iShares has filed with the SEC to bring to market an exciting array of bond ETFs, focusing on the high-yield corner of both the domestic and international fixed income markets:

  • iShares B – Ca Rated Corporate Bond Fund: This ETF will seek to replicate the price and yield performance of the Barclays U.S. Corporate B – Ca Capped Index. The underlying index includes high-yield, U.S. dollar-denominated taxable fixed-rate securities with maturities of one year or more and $500 million or more of outstanding face value issued by financial, industrial, and utility corporations [see SEC Filing].
  • iShares Baa – Ba Rated Corporate Bond Fund: This ETF will seek to replicate the price and yield performance of the Barclays U.S. Corporate Baa – Ba Capped Index. The underlying index will provide exposure to a mixture of low-rated investment grade bonds, as well as junk bonds with relatively high ratings, resulting in a unique risk/return profile [see SEC Filing].
  • iShares Global High Yield Corporate Bond Fund: This ETF will seek to replicate the price and yield performance of the Markit iBoxx Global Developed Markets High Yield Index. The underlying index is rules-based and is designed to provide broad-based exposure to the global high yield corporate bond market. The holdings will be denominated in U.S. dollars, Euros, British pounds, and Canadian dollars [see SEC Filing].
  • iShares Global ex USD High Yield Corporate Bond Fund: This ETF will seek to replicate the price and yield performance of the Markit iBoxx Global Developed Markets ex-US High Yield Index. The underlying index is rules-based and will consist of high yield debt securities, excluding ones from the U.S., denominated in Euros, British pounds, and Canadian dollars [see SEC Filing]
Global X has also laid down the groundwork for three income-focused ETFs [see SEC Filing]:
  • Global X SuperIncome ETF: This ETF will track the price and yield performance of the Solactive Global SuperIncome Index. The underlying index will offer exposure to high income securities globally across various asset classes, including equities, REITs, MLPs, preferred stocks and fixed income notes.
  • Global X SuperIncome Preferred ETF: This ETF will track the price and yield performance of the S&P High Yield Preferred Stock Index. The underlying index features many different categories of preferred stock, including floating and fixed rate securities, perpetual preferred stock, as well as cumulative and non-cumulative securities.
  • Global X SuperIncome REIT ETF: This ETF will track the price and yield performance of the Solactive Global SuperIncome REIT Index. The underlying index will consist of the highest yielding real estate investment trusts (REITs) from all over the globe.

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Disclosure: No positions at time of writing.