VanEck has launched the VanEck Vectors JP Morgan EM Local Currency Bond UCITS ETF (EMLC) on the London Stock Exchange, offering exposure to bonds issued in local currencies by emerging market governments. Uwe Eberle, head of international business development and distribution at VanEck, commented: “Local emerging markets economies have hstorically had higher yields than developed markets and potential for currency appreciation. Additionally, local currency bonds tend to have a lower correlation to the US dollar and thus provide a great way to diversify a portfolio.”
UBS Asset Management has reduced the total expense ratio (TER) on the UBS ETF Barclays TIPS 1-10 UCITS ETF (LON: UBTS) with the new pricing effective from 1 April 2017. The fund offers investors inflation risk mitigation by tracking US Treasury Inflation-Protected Securities (TIPS).
Canada-based Mackenzie Investments has received final approval from securities regulators to launch a fixed income ETF on Aequitas NEO Exchange. The Mackenzie Global High Yield Fixed Income ETF (MHYB) will be the fifth fund in Mackenzie Investment’s series of active fixed income ETFs and is expected to begin trading on 26 April 2017.
By Jamil Baz, managing director and global head of client analytics, PIMCO.
Ask an investor if most active bond funds outperform their passive counterparts and the response is likely to be “no”. After all, if one investor beats the market, another must lag it. Active strategies incur higher fees, so the majority should underperform their lower-fee passive counterparts. Our research suggests otherwise – at least for bonds, if not for stocks.
New data shows that long-term performance of active bond funds has generally failed to beat the market, pushing more investors towards fixed income exchange-traded funds instead.
JP Morgan Asset Management has launched the JP Morgan Global Bond Opportunities ETF (Bats: JPGB), an actively managed ETF seeking fixed income opportunities across market sectors, credit quality, countries and currencies, extending beyond traditional bond investments.
Blackrock has announced it will make changes to the indices underlying two of its fixed income ETFs, the iShares Emerging Markets Corporate Bond ETF (Bats: CEMB) and the iShares Emerging Markets Local Currency Bond ETF (Bats: LEMB).
VanEck is celebrating the fifth anniversary of the launch of the VanEck Vectors Fallen Angel High Yield Bond ETF (ANGL) which recently passed $750 million in assets under management.
Arrow Funds has launched the Arrow Reserve Capital Management ETF (ARCM) on the Bats Global Markets Exchange. The actively managed ultra-short term fixed income portfolio seeks capital preservation with maximum income, offering investors an alternative to traditional money market funds and bank deposits.
Nuveen, an operating division of TIAA Global Asset Management, has launched the NuShares Enhanced Yield 1–5 Year US Aggregate Bond ETF (NYSE Arca: NUSA), seeking to provide enhanced yield relative to the taxable short term US investment grade fixed income market with comparable risk and credit quality.