Exchange traded fund (ETF) providers are flooding the market with new offerings in the fixed income department as investors continue to pour assets into this sector in search of havens.
Flows into fixed-income ETFs have almost kept pace with last year, says JessicaToonkel Marquez for Investment News. For the first six months of 2010, fixed-income ETFs brought in $17.5 billion, compared with $20.2 billion a year earlier, according to Morningstar data. [How to Play Deflation With ETFs.]
About 23 fixed-income products have launched this year in contrast to the 11 that hit the market fresh last year. Many new providers are entering into the fixed-income arena: Charles Schwab & Co. Inc., Grail Advisors LLC, PowerShares , Northern Trust Corp. and State Street Global Advisors are among the firms that are planning or have already launched products this year.
ETFs allow advisers to park money in safer investments but also have the flexibility to get out quickly if interest rates rise, a threat that is looming in today’s market. Investors and advisors want to able to react to markets movements, especially as the volatility increases. [How Treasuries Did for the First Half of 2010.]
You can find bond ETFs by going to our ETF Analyzer and selecting “fixed-income” from the drop-down menu:
For more stories about fixed-income, visit our bond ETF category.
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.