Fixed Income

Vanguard changes indices underlying three bond ETFs

Aug 16th, 2017 | By
Vanguard planning US total corporate bond ETF of ETFs

Vanguard has announced a change in indices underlying three of its government bond ETFs. The changes, which are due to take place during the fourth quarter of 2017, will see the ETFs’ underlying indices transition to pure Treasury indices. The move is expected to provide more targeted exposure to segments of the US government bond market and may potentially reduce bid-ask spreads.



Deutsche introduces currency hedging for smart beta EM bond ETF

Aug 9th, 2017 | By
Deutsche launches smart beta emerging markets bond ETF on Deutsche Börse

Deutsche Asset Management has unveiled the db x-trackers iBoxx USD Emerging Sovereigns Quality Weighted EUR-hedged UCITS ETF (XQUE) on Deutsche Börse’s Xetra and Frankfurt exchanges. The fund provides smart beta exposure to high quality emerging market government bonds while mitigating currency risk between the US dollar-denominated bonds and the ETF’s trading currency – the euro.



BlackRock reports near-record flows into bond ETFs during Q2 2017

Aug 8th, 2017 | By
US-listed ETFs gather $300bn net inflows YTD

The global bond ETF industry attracted $43.3 billion of net inflows in Q2 2017, just short of the industry record of $44.5bn set in Q1 2017, according to BlackRock’s Q2 Global ETF industry report. Stephen Cohen, head of fixed income beta at BlackRock, writes that the firm’s own ETF arm – iShares – captured $21.0bn (or 48.5%) of these net new assets with flows “driven by investor appetite for investment grade credit, emerging market debt and government bond funds.”



Deutsche announces changes to emerging markets eurobond ETF

Aug 8th, 2017 | By
db X-trackers lists first physically replicated ETFs

Deutsche Asset Management has announced a number of changes to the db x-trackers II Emerging Markets Liquid Eurobond UCITS ETF (Xetra: XEMB), which include changing the ETF’s name, total expense ratio, replication method and the index it tracks.



BlackRock: Three ways ETFs have revolutionized the bond market

Aug 2nd, 2017 | By
Matthew Tucker iShares BlackRock

By Matthew Tucker, head of iShares Americas fixed income strategy at BlackRock.

Fifteen years ago this week the first bond ETFs debuted, changing the way investors can access fixed income markets. At first, only four iShares bond ETFs were available, with just a small amount of assets and access limited to Treasuries and US investment grade credit. Today there are over 300 bond ETFs in the US with more than $500 billion in AUM, offering entry into almost every sector of the bond market. What brought about this exceptional growth?



JP Morgan launches new MBS agency index

Jul 27th, 2017 | By
Mortgage Property ETF REIT, Real Estate

JP Morgan has unveiled the JP Morgan MBS Agency Index (MAX), tracking the largest and most traded fixed-rate agency issues in the US mortgage-backed securities (MBS) market. The index is suitable as a benchmark in discretionary fund management or as an underlying reference index for index-linked investment products such as ETFs.



IG picks six of the best government bond ETFs

Jul 25th, 2017 | By
IG picks six of the best US ETFs

By Oliver Smith, portfolio manager at IG Group.

ETFs are excellent products for getting exposure to a wide number of asset classes, but with a multitude of competing ETFs using different indices, it can be difficult to know where to start. In this piece we take a look at six government bond ETFs.



Lyxor rolls out three fixed income ETFs on Borsa Italiana

Jul 18th, 2017 | By
Lyxor rolls out three fixed income ETFs on Borsa Italiana

Lyxor has launched three new fixed income ETFs on Borsa Italiana, the Lyxor BofAML EUR Short Term High Yield UCITS ETF (HYS), Lyxor BofAML $ Short Term High Yield Euro Hedged UCITS ETF (HYSTH) and the Lyxor $ Float Rate Note EUR Hedged UCITS ETF (FLOTH).



BlackRock slashes fees on iShares MBS ETF

Jul 17th, 2017 | By
BlackRock slashes fees on iShares MBS ETF

BlackRock has reduced the fees charged on the iShares MBS ETF (NYSE Arca: MBB) from 0.27% to just 0.09%. MBB tracks the Bloomberg Barclays US Mortgage Backed Securities Index, composed of a broad range of investment-grade mortgage-backed pass-through securities issued and/or guaranteed by US government agencies such as Ginnie Mae, Fannie Mae, and Freddie Mac.



BlackRock launches cheapest floating rate bond ETF in Europe

Jul 12th, 2017 | By
Brett Pybus ETFs iShares

BlackRock has expanded its fixed income ETF range with the launch of the iShares $ Floating Rate Bond UCITS ETF (LON: FLOT), a floating rate bond fund, designed to protect investor portfolios against a rise in interest rates. FLOT is being offered with a total expense ratio of just 0.10%. Brett Pybus, head of iShares EMEA fixed income strategy at BlackRock, commented: “This fund provides investors with a way to reduce duration and protect portfolios while offering an attractive yield compared with money market funds.”