BlackRock’s (NYSE: BLK) iShares unit, the world’s largest issuer of exchange traded funds, and Intercontinental Exchange (NYSE: ICE) said Friday four iShares fixed income ETFs will transition to Interactive Data Pricing and Reference Data indexes. Interactive Data Pricing and Reference Data is a unit of Intercontinental Exchange.
The four iShares ETFs moving to Interactive Data Pricing and Reference Data indexes are the iShares 1-3 Year Treasury Bond ETF (NYSEArca: SHY), iShares 3-7 Year Treasury Bond ETF (NYSEArca: IEI), iShares 7-10 Year Treasury Bond ETF (NYSEArca: IEF) and the iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT).
In the days before we turned over into a new year, 30-year Treasury yields were trading slightly above 3.0%. Long-term Treasury yields currently sit at around 2.892% after concerns about a slowdown in China dragged down markets and fueled safe-haven plays.
While the Federal Reserve has predicted four interest-rate hikes this year – some, though, are now skeptical about a March change, safe-haven demand could continue to bolster Treasury bonds.
Demand for fixed income data continues to increase, in part fueled by the growth in passive investment strategies through products such as ETFs. In 2015, bond ETFs grew at a 22% organic growth as more investors use ETFs to gain exposure to fixed income markets. BlackRock’s overall fixed income ETF business has $256 billion in global assets under management and offers investors a comprehensive range of options for low-cost access to the fixed income market,” according to a statement issued by Intercontinental Exchange.