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SCPB

Fixed income securities have long been a major part of investor portfolios; corporate bonds in particular often hold a key role. In many cases investment-grade corporate bonds can have a “win-win” impact on portfolios, reducing overall volatility while also delivering income. Unfortunately, bonds have some attributes that make them less than ideal for many individual investors; because investors cannot buy or sell partial “shares” of a bond, it can be difficult for investors to buy and hold a truly diversified portfolio [see also How To Pick The Right ETF Every Time]. [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 over the past few years that have dramatically opened up the asset classes and investment strategies available through the exchange-traded structures [see also Free Report: How To Pick The Right ETF Every Time].

But there are other aspects of the industry that deserve credit for exciting new developments as well. While ETFs are still hard to find in most 401(k) account and other retirement plans, they are now readily accessible in a popular college savings account; a program from State Street allows new parents to use ETFs in a college savings plan for children, through an ETF-focused 529 plan. [click to continue…]

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The year-end periods provides the ETF industry with a couple of opportunities to flex its collective muscle; performance comparisons generally tend to favor those products with lower expense ratios–a defining feature of exchange-traded funds. But early January also puts another benefit of exchange-traded products into focus: enhanced tax efficiency relative to traditional mutual funds. The […]

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State Street has become the latest ETF issuer to jump in on the corporate bond ETF boom, launching the SPDR Barclays Capital Short Term Corporate Bond ETF (SCPB) on Wednesday. SCPB will be linked to the Barclays Capital U.S. 1-3 Year Corporate Bond Index, a benchmark that measures the performance of investment grade corporate debt […]

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The reasons for the rise of the ETF industry are numerous: intraday liquidity, (potentially) superior tax efficiency, and enhanced transparency relative to traditional actively-managed mutual funds have all contributed to the billions of dollars of inflows that these funds have seen in recent years. But the real attraction for most ETF investors is the reduced […]

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