Just a few years ago there were only a handful of bond ETFs available to U.S. investors, and almost all of them focused on securities from U.S. issuers denominated in U.S. dollars. One of the most noteworthy innovations to shape the ETF industry over the last several years has been a significant growth in international bond products; as issuers have worked around concentration-related issues and other hurdles, the universe of bond ETPs targeting markets beyond U.S. borders has grown tremendously.
The current economic environment has no doubt contributed to the growth of international bond ETFs; paltry yields on U.S. debt and concerns over the long-term outlook for the euro have understandable sparked interest in ex-U.S. bonds as a way to both boost yields and diversify away some risk [see Better-Than-AGG Total Bond Market ETFdb Portfolio]. [click to continue…]
Investors’ confidence has taken a serious beating over the past few months as debt drama on both sides of the Atlantic ocean has paved the way for volatile price action across financial markets. Despite better-than-expected economic data releases on the home front, Euro zone debt woes have definitively taken center stage; sentiment on Wall Street [...]
Interest in achieving fixed income exposure through exchange-traded funds has been a hot topic in recent years, with some advisors expressing serious concerns over the potential shortcomings in bond ETFs while others have fully embraced the efficiencies of the exchange-traded structure [see Are Bond ETFs Broken?].
After a record-setting October gave investors hope that 2011 would finish on a strong note, the first couple weeks of November have effectively taken any wind out of those sails. The culprit–surprise, surprise–has been the cash-strapped PIIGS economies of Europe, with Italy now grabbing the spotlight as a serious credit risk and a grave threat [...]
Equity markets have taken investors for a wild ride over the past three months with chaotic trading dominating virtually every nook and corner of Wall Street. Amidst the volatility, investors have been seeking out refuge and fleeing to “safer” asset classes; although rational, this approach inevitability overlooks certain corners of the market that may in [...]
iShares, the firm behind the most popular ETF in the Emerging Markets Bonds ETFdb Category, rolled out another similar product to complement EMB on Thursday. The new Emerging Markets Local Currency Bond Fund (LEMB) will offer investors exposure to debt of emerging markets issuers that is denominated in local currencies, such as the South Korean [...]
Wall Street started and ended last week on a positive note. Investors came back to the equity markets on Monday after French and German policymakers voiced their support to come up with a viable plan for restoring stability in the Euro zone by November. Meanwhile, on the home front, domestic equity indexes extended gains throughout [...]
Domestic equity indexes having been climbing higher all week, posting seven consecutive sessions in green territory. Investors are showing confidence in European lawmakers to bring forth a concrete plan of action in due time, while at home, corporate earnings have gotten off to a solid start. Yet, FOMC minutes from the most recent Fed meeting revealed [...]
Wall Street was able to close out the week in solid positive territory, although investor worries remain escalated over the uncertainty still plaguing the debt-stricken Euro zone. Waves of optimism and improvements in investor confidence, following a better-than-expected employment report at home, helped stocks climb higher last week. Gold prices remain range-bound although the yellow [...]
In what was pretty much a complete reversal of yesterday’s trading session, stocks rose across the board as investors bought up shares on better-than-expected jobless claims which finally fell below the key 400,000 mark. The Dow surged by 423 points, or just under 4.0% while the broader indexes turned in better performances, with gains of [...]
The ETF industry continues to expand at an impressive rate, with dozens of new products debuting every month and the size of the lineup quickly approaching the 1,300 mark. While each new month generally brings a number of new product launches, it also beings some important milestones for ETFs that have debuted in the past. [...]
