International Treasury Bonds

Japanese government bonds and related exchange traded products have been on a streak this year, with Japan becoming the first major economy with a sub-zero yield on benchmark 10-year debt. The DB Japanese Govt Bond Futures ETN (NYSEArca: JGBL), which tracks 10-year Japanese government bond futures, rose 3.8% year-to-date. Meanwhile, the DB 3x Japanese Govt […]

Investors who are using emerging market bond exchange traded funds to supplement their income needs should understand the potential risks of being exposed to this foreign debt asset. On Wednesday, emerging market borrowing costs hit their highest level in five years as investors warned of a crippling credit crunch, the Financial Times reports. The weakness […]

If the Federal Reserve maintains a slow and gradual interest rate hike schedule, fixed-income investors may turn to emerging market bond exchange traded funds to capture higher yields. “We believe emerging market (EM) assets, particularly currencies and select sovereign bonds, may provide the best investment opportunities in the current low-yield environment – a condition that […]

Some the largest money managers are expecting European debt to outpace U.S. Treasuries ahead. Investors can also capitalize on potential fixed-income opportunities overseas with international bond exchange traded funds. BlackRock, Pacific Investment management Co. and Prudential Financial Inc. all believe riskier peripheral European country debt will outperform as the European Central Bank extends its bond […]

The increasingly leveraged emerging markets may leave developing economies, along with related bond exchange traded funds, open to rising default risks. As the U.S. dollar strengthens against the U.S. dollar, some bond observers have issued a warning on emerging market bonds denominated in USD, arguing that the stronger dollar would make it harder for emerging […]

Global deflationary concerns are helping to support European fixed-income markets and German bond-related exchange traded products. Over the past month, the DB German Bond Futures ETN (NYSE Arca: BUNL) rose 1.3% and the leveraged DB 3x German Bond Futures ETN (NYSE Arca: BUNT), which tries to reflect the three times or 300% daily performance of […]

Developing market equities may have fallen off this year. However, emerging market bonds and related exchange traded funds are outperforming U.S. debt, and they come with more attractive yields. Year-to-date, the iShares J.P. Morgan USD Emerging Markets Bond ETF (NYSEArca: EMB), which has a 7.25 year duration and a 5.04% 30-day SEC yield, rose 1.6%; […]

With the Eurozone fixed-income market growing harder to trade, bond investors may be turning to international debt-related exchange traded funds to get their Europe fix. For instance, investors can gain European bond exposure through broad international fixed-income ETFs, such as the SPDR Barclays International Treasury Bond ETF (NYSEArca: BWX) and the iShares International Treasury Bond […]

International bond exchange traded funds with European exposure could advance as the European Central Bank could be forced to pay a premium on bond purchases and lift prices on all Eurozone debt in response to the lack of supply. While there are no Europe-focused bond ETFs available, investors can gain exposure to the region through […]

With Japan and Europe central banks increasing their debt purchasing programs, global demand for fixed-income assets is set to outpace supply next year, potentially supporting the fixed-income market and keeping U.S. bond exchange traded funds as an attractive option for yield generation. According to JPMorgan Chase & Co. data, central banks in U.S., Europe, Japan […]

Pension funds could increase their long-term developed market bond allocations to meet liabilities, potentially dampening the negative effects of rising rates on long-term U.S. Treasury bond exchange traded funds. According to a Pyramis Global Advisors survey, pension funds that monitor $9 trillion of assets in North America Europe and Asia could pile into long-term debt […]

Fixed-income investors are concerned about the potential negative effects of a rising rate environment. Nevertheless, emerging market debt and bond-related exchange traded funds can provide attractive opportunities. “It’s always hard to know exactly where to put your money these days given how rates and spreads are so low, but on a relative basis we still […]

With the yield spread on 10-year German bunds against similar maturity U.S. Treasuries at its highest in 15 years, Treasury bond exchange traded funds could find support from European investors who are looking for more attractive income options. The iShares 7-10 Year Treasury Bond ETF (NYSEArca: IEF), which has a 7.53 year effective duration, offers […]

With more exchange traded fund options now available, fixed-income investors can expand their portfolios to include emerging market debt exposure. However, not all ETFs are created equal, so potential investors should review the various offerings before diving in. For starters, some of the first emerging market bond ETFs to hit the market are denominated in […]

As the markets weigh on Ukraine, Russia and the retaliatory sanctions, European investors jumped into safe-haven assets, lifting German bunds, along with related exchange traded funds, and pushing down 2-year note yields below zero. Over the past three months, the PowerShares DB German Bond Futures ETN (NYSE Arca: BUNL) has gained 3.4% and the PIMCO […]

ETF Spotlight on the WisdomTree Asia Local Debt Fund (NYSEArca: ALD), part of an ongoing series. Assets: $348.2 million Objective: The WisdomTree Asia Local Debt Fund is actively managed and tries to generate a high level of total returns through investing in local debt denominated in currencies of Asia Pacific ex-Japan countries. Holdings: Top holdings […]

International bond exchange traded funds allow investors to diversify their portfolios or to fill out a targeted investment strategy. ETFs that track international debt securities help investors meet a number of investment goals, writes William Baldwin for Forbes. For instance, the iShares International Treasury Bond ETF (NYSEArca: IGOV), which tracks bonds denominated in local currencies […]

Inflation is starting to pick up and people should begin to hedge accordingly. For instance, investors can take a look at Treasury inflation protected securities, along with related exchange traded funds, to help keep rising consumer prices from eating away at their fixed-income portfolios. The index for personal consumption expenditures rose to 1.8% in May, […]

Bond investors are increasingly turning to easy-to-use, cheap and efficient exchange traded funds to get their fixed-income fix. According to BlackRock data, fixed-income ETFs attracted 54% of all exchange traded product inflows over the first five months of the year, writes Todd Rosenbluth, S&P Capital IQ Director of ETF Research, for CNBC. “Bond ETFs can […]

Italy bond exchange traded notes jumped Thursday, with benchmark yields touching a new Eurozone-era low at the government auction, after the unexpected victory of the center-left PD party in the country’s elections. The leveraged PowerShares DB 3x Italian Treasury Bond Futures ETN (NYSEArca: ITLT) was up 6.5% Thursday while the unleveraged PowerShares DB Italian Treasury […]

ETF Spotlight on the SPDR Barclays International Treasury Bond ETF (NYSEArca: BWX), part of an ongoing series. Assets: $2.4 billion Objective: The SPDR Barclays International Treasury Bond ETF tries to reflect the performance of the Barclays Global Treasury ex-US Capped Index, which includes fixed-rate local currency sovereign debt of investment grade countries outside of the […]

ETF Spotlight on the PIMCO Australia Bond Index ETF (NYSEArca: AUD), part of an ongoing series. Assets: $25.9 million Objective: The PIMCO Australia Bond Index ETF tries to reflect the performance of the BofA Merrill Lynch Diversified Australia Bond Index, which provides exposure to Australian dollar-denominated, investment-grade bonds. Holdings: Top holdings include New S. Wales […]

I do the “ETF of the Week” for MarketWatch every Thursday on Chuck Jaffe’s MoneyLife Show where I highlight big movers and disappointments within the exchange traded fund market. On Thursday, I looked at the Vanguard Total International Bond ETF (NYSEArca: BNDX). The ETF provides diverse exposure to investment-grade, non-U.S. fixed-income assets while hedging currency […]

WisdomTree, an exchange traded fund provider known for its alternative international focus, launched an active U.S. dollar fund and five fixed-income strategies that mitigate interest rate risk. The actively managed WisdomTree Bloomberg U.S. Dollar Bullish Fund (NYSEArca: USDU) will try to outperform the Bloomberg Dollar Spot Index through the use of short-term, investment grade instruments, […]

Instead of shifting down fixed-income assets as a hedge against rising rates from a three decade low, investors can consider foreign bond exchange traded funds that are less affected by U.S. rate risks. “High-quality international bonds offer a simple way to buffer a bond portfolio from rising interest rates,” Chris Philips, a senior analyst in […]

Many have begun shifting around bond allocations to hedge against the rising rate environment. On Thursday, investors will also be able to diminish risk in emerging market bond exposure with a new ProShares exchange traded fund. The ProShares Short Term USD Emerging Markets Bond ETF (BATS: EMSH) will reportedly launch Thursday, Nov. 21. According to […]

Distracted by the rally in the equities market, investors continued pulling assets out of emerging market bond exchange traded funds. According to EPFR and Nomura Securities data, emerging market bond bled $5 billion in assets in October, compared to a $2.8 billion outflow in September, suggesting investors are not confident in emerging debt, reports Shuli […]

Well-documented is the havoc caused by rising U.S. Treasury yields. Scores of asset classes from popular income-generating sectors to emerging markets currencies have been ravaged by the effects of rising U.S. interest rates. Of course, the same can be said of long duration U.S. government bonds and the corresponding ETFs. Outflows from U.S.-focused bond funds […]

Emerging market bond exchange traded funds have been a popular source of income in a low yield environment, but with U.S. interest rates rising, these assets have experienced heavy losses. More could be in store if Treasury yields rise further. The iShares Emerging Markets USD Bond ETF (NYSEArca: EMB) has declined 8.7% over the past […]

Invesco PowerShares has launched a new global high-yield exchange traded fund focused on bonds with shorter maturities. The fund joins a growing list of ETFs designed for bond investors who want international diversification, yield and some protection from rising interest rates. According to a press release, the PowerShares Global Short Term High Yield Bond Portfolio […]