Motif Investing introduces suite of theme-based fixed income ETF baskets

Aug 17th, 2012 | By | Category: ETF and Index News

Motif Investing, a US, California-based online broker specialising in theme-based stock and exchange-traded fund (ETF) baskets, has expanded its product offering by introducing 10 new fixed-income baskets (or ‘motifs’, as the company calls them) containing bond ETFs tied to certain macro-economic trends.

Motif Investing introduces suite of theme-based fixed income ETF baskets

Motif Investing, an US-based online broker,  has introduced a suite of theme-based fixed income ETF baskets.

“In today’s volatile markets, investors are increasing their allocation to fixed income,” said Hardeep Walia, Motif’s chief executive. “We now offer customers a chance to invest in ‘motifs’ based on bond ETFs in the same, intuitive way they invest in equity-based ‘motifs’ tracking real-world trends.”

Motif’s fixed income ETF baskets are created in the same way as stock baskets are built: the company’s investment team searches for real-world ideas, themes and trends that can be turned into ready-made investment portfolios.

Within equities, baskets are built around wide-ranging, everyday concepts like junk foods, electronic payments, income inequality or balance-sheet strength. The new fixed income ETF baskets track more fundamental economic topics, including inflation, deflation, and AMT (alternative minimum tax).

The inflation basket, for example, includes bond ETFs that hold TIPS (Treasury Inflation Protected Securities) and similar foreign government-issued bonds designed to hedge against inflation; the American bonds basket includes US government and corporate bond ETFs that provide a safe haven against stock market volatility, while the AMT-Free Munis basket is designed to help investors subject to the alternative minimum tax capture some tax-free interest income by holding ETFs containing AMT-Free municipal bonds.

Tags: ,

Leave a Comment



More in ETF and Index News
MSCI launches factor ESG index series
ETF AUM linked to MSCI equity indices passes $700bn milestone

MSCI has announced that assets under management in equity ETFs linked to its indices has reached an all-time high of $707 billion, as...

AUM in inverse & leveraged ETFs reaching record highs, finds ETFGI
Inverse & leveraged ETF AUM reaching record highs, finds ETFGI

Assets invested in inverse and leveraged ETFs listed globally increased 14.1% in the first nine months of 2017 to reach a new record...

Close