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WIP

This month, legendary bond king Bill Gross published his investment outlook, aptly titled “Strawberry Fields – Forever?”, in which he warned investors to be prepared to face some “structural economic headwinds” in the next few years. In addition to the aftermath of the 2008 financial crisis we still feel today, diminished productivity gains and the looming fiscal cliff, Gross points out other blaring red flags that investors need to pay attention to, as these critical factors will likely hamper economic growth in not only the United States, but also in other developed nations around the globe [see 101 ETF Lessons Every Financial Advisor Should Learn]. [click to continue…]

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As central banks around the world continue to plow money into the financial system, investors have been bracing for an eventual uptick in inflationary pressures. While reported inflation throughout the developed world has remained tame–most markets are well within their official “comfort zone”–anxiety over rising prices remains. When the global economy stabilizes and consumers become more able to bear price increases, many expect CPI to spike [see Black Swan Hyperinflation ETFdb Portfolio].

There are a number of different tools for combating inflation. Some swear by commodities, which logically tend to appreciate when inflation arrives. Others believe equities make for a good bet in inflationary environments. But perhaps the most common tool for “inflation-proofing” a portfolio are inflation-protected bonds, securities whose face value adjusts based on reported inflation metrics.

ETFs have become common vehicles for holding TIPS; the Inflation Protected Bonds ETFdb Category consists of more than a dozen exchange-traded products, including domestic and international funds, with aggregate assets of almost $30 billion [see a list of all ETFdb Categories]. [click to continue…]

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The ETF industry has been routinely praised for its innovation over the last several years, which is no doubt a contributing factor to the surge in interest and assets. Generally, reference to such innovation relates to the growth in the product lineup, as issuers of all sizes have launched a number of creative, first-to-market products […]

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PIMCO Launches Active TIPS ETF (ILB)

by on May 1, 2012 | Updated June 22, 2012

PIMCO, fresh off the extremely successful launch of its Total Return ETF (BOND), has rolled out another actively managed bond fund that taps into a corner of the fixed income market that has generated significant interest in recent years. The new Global Advantage Inflation-Linked Bond Strategy Fund (ILB) will be comprised of inflation-protected bonds, securities […]

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Bond ETFs For Every Objective

by on February 1, 2012 | Updated February 5, 2012

As the lineup of exchange-traded products has expanded dramatically in recent years, financial advisors have found themselves with more tools at their disposal than ever before. The extreme granularity of many of the equity products out there allows for cheap, low maintenance targeting of specific corners of the investable universe, while the development of some […]

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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 […]

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Getting The Most Out Of Your Bond ETFs

by on November 22, 2011 | Updated September 22, 2014

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?].

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Euro Drama Far From Gone

by on November 12, 2011

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 […]

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Rome Wasn’t Built In A Day

by on November 9, 2011

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 […]

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Bulls Look To Stampede Over Euro Drama

by on November 7, 2011

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 […]

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WisdomTree Rolls Out Australian Bond ETF (AUNZ)

by on October 25, 2011 | Updated May 14, 2013

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 […]

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Using ETFs To Build A Complete Bond Portfolio

by on August 18, 2011 | Updated December 8, 2014

In recent years, ETFs have become increasingly 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 […]

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