S&P Capital IQ expands analysis, ranking of bond ETFs

Criteria will include performance, credit quality, duration, yield, expense ratio

May 21, 2013 @ 11:55 am

By Jeff Benjamin

S&P Capital IQ this week is expanding its analysis and ranking of fixed-income exchange-traded funds.

The move reflects the growing popularity of bond ETFs, according to Todd Rosenbluth, an analyst at S&P Capital IQ.

“We know that investors are choosing fixed-income ETFs, sometimes for the right reasons, and sometimes the wrong reasons,” he said. “Investors want help in comparing products.”

Including exchange-traded notes, the fixed-income exchange-traded products category has reached nearly $260 billion, or about 17% of the total $1.5 trillion exchange-traded product universe.

Of the 170 fixed-income ETFs, Mr. Rosenbluth said that half were launched in the past three years.

The first bond ETFs were launched in 2002 by iShares.

“We've seen a critical mass of fixed-income ETFs,” Mr. Rosenbluth said. “There are now 40 bond ETFs with more than $1 billion in assets.”

The ETFs will be ranked either as underweight, overweight or neutral, and coverage will begin as soon as an ETF reaches its two-month mark.

“We're not looking at past performance alone,” Mr. Rosenbluth said. “We're also looking at things like credit quality, duration, yield, and expense ratio, among other criteria.”

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

CAIS's Brown: Big trends in wealth management

One of the biggest trends of 2017 was traditional institutional asset managers aiming their services at RIAs. How will this impact 2018? Matt Brown of CAIS explains.

Video Spotlight

Help Clients Be Prepared, Not Surprised

Sponsored by Prudential

Recommended Video

Path to growth

Latest news & opinion

Broker, retirement groups make last-minute pleas to change tax legislation

Pass-through provisions are target of groups representing employee-model brokerage firms, as well as retirement plan advisers.

House and Senate reach tentative compromise for tax overhaul

Lawmakers still need to get a cost analysis of their agreement, so it's not yet definite, according to a source.

Advisers' biggest fears for 2018

What keeps advisers up at night.

One adviser's story of losing his son to the opioid epidemic

John W. Brower, president and CEO of JW Brower & Associates, shares the story behind his son's death from a heroin overdose and how it inspired him to help others break the cycle of addiction.

Tax reform will boost food, chemicals, rail stocks. Technology? Not so much

Conagra and Berkshire Hathaway are two stocks that should benefit most from changes in the tax code.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print