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

etfs
+ Zoom

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

Federated's Orlando: The economic and financial midyear outlook

As a country, are we stuck in neutral? Federated's Phil Orlando explains what he believes needs to happen to create an economic surge. (Hint: It rhymes with "crump.")

Video Spotlight

Will It Last As Long As Your Clients Do?

Sponsored by Prudential

Video Spotlight

The Catalyst

Sponsored by Pershing

Latest news & opinion

Brian Block's $4 million bonus was tied to a key metric at ARCP

Prosecution rests case in fraud trial against CFO of American Realty Capital Properties.

Edward Jones is winning the Google search war

Brokerage firm's digital marketing investment helps land it at the top of local and overall search engine results, report finds.

Voya's win in 401(k) fee suit involving Financial Engines bodes well for other record keepers

Fidelity, Aon Hewitt and Xerox HR Solutions are currently defending against similar fiduciary-breach claims.

Collective investment trusts getting more attention from 401(k) advisers

The funds are catching on due largely to lower costs and more product availability, but come with some inherent drawbacks.

Vanguard rides robo-advice wave to $65B in assets

Personal Advisor Services, four times the size of its closest competitor, combines digital and human touch.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print