Barclays Global unveils two new ETFs

Barclays Global Investors of San Francisco today announced the launch of two exchange traded funds: the iShares S&P Short Term National Municipal Bond Fund (SUB) and the iShares Barclays Agency Bond Fund (AGZ). The new iShares funds offer access to the municipal and agency markets. “Recent volatility in the fixed-income markets has increased investor demand for products that are liquid and transparent,” Matthew Tucker, head of U.S. fixed-income investment strategy at Barclays, said in a statement. “Fixed-income iShares ETFs have provided investors with access to a wide range of fixed-income sectors in these difficult times and we’re pleased to offer the two new funds.” The iShares S&P Short Term National Municipal Bond Fund’s expense ratio is 0.25%. The fund is designed to track the S&P National 0-5 Year Municipal Bond Index, which measures the performance of the short-term investment-grade segment of the U.S. municipal bond market. The iShares Barclays Agency Bond Fund’s expense ratio is 0.20% and the fund is designed to track the Barclays Capital U.S. Agency Index, which measures the performance of the agency sector of the U.S. government bond market. It is comprised of investment-grade bonds issued by government and government-related agencies, including Fannie Mae of Washington.