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…]
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?].
European debt woes dominated headlines all of last week yet again as investor worries over the debt burdened currency bloc continue to weigh down on the markets. Euphoria swept over the markets after Berlusconi’s resignation announcement earlier in the week, paving the way higher for European and U.S. equities alike. However, fear quickly returned the [...]
Equity markets rejoiced all of last week as the cloud of uncertainty looming over the Greek debt crisis appeared to be shrinking. Euphoria quickly evaporated this week however, as equity indexes resumed their volatile ways thanks to resurfacing Italian debt woes. News of Italian Prime Minister Berlusconi resigning lifted stocks on Tuesday, although investor confidence [...]
Financial markets saw a whirlwind of activity last week as Euro zone debt woes swayed investor sentiment from euphoric to fearful. Equity markets came under serious selling pressures after news of a Greek referendum reignited default fears. Confidence in the currency bloc quickly returned however as the Greeks rescinded their referendum and bullish investors were [...]
WisdomTree, the issuer behind a number of popular international debt ETFs, followed through today on the previously announced conversion of its Dreyfus New Zealand Dollar Fund (previously traded under the ticker BNZ) to the Australian & New Zealand Debt Fund (AUNZ). The revised fund will continue to be actively managed, with the investment objective changing [...]
In recent years, ETFs have become increasing popular tools for accessing the fixed income corner of the market. The space initially grew much more slowly than equity ETFs, but investors have gradually become more comfortable with the combination of fixed income exposure and the exchange-traded structure. Innovation in the bond ETF space has been impressive [...]
Inflation has been a particularly frustrating topic in recent months. Despite widespread predictions for a surge in CPI in the wake of unprecedented injections of liquidity into global financial markets, upward pressure on prices has not yet materialized–at least not in many developed markets. The prospect of what seems to be an inevitable outcome has [...]
The fixed income corner of the ETF industry has experienced tremendous growth in recent years, as investors have become increasingly comfortable with achieving bond exposure through the exchange-traded structure. In 2010 more than $26 billion flowed into bond ETFs, following a year that saw more than $42 billion in net inflows. During the first six [...]
The first half of 2011 is officially in the books, and many investors find their portfolios in approximately the same place as they were to start the year (though a furious rally in the final week of the quarter gave a nice boost at an opportune moment). Most major equity indexes are up slightly on [...]
iShares, the issuer behind the $20 billion Barclays TIPS Bond Fund (TIP), has introduced two new ETFs offering exposure to inflation-protected bonds from issuers outside the U.S. The new iShares ETFs include:
