Rosenbluth noted that fixed-income investments are a component in nearly every asset allocation model.
“With now over $250 billion in assets, fixed income ETFs have become a very popular, and very useful, tool for investors and advisors looking to add yield and diversification while often paying less in fees than they otherwise would for similar mutual funds,” he said. “That being said, the universe of ETFs has exploded in recent years, making due diligence essential before selecting a fund in order to ensure that it offers the risk-reward characteristics that an advisor or investor may be seeking without incurring elevated costs.”
S&P is also launching reports on about 40 commodity ETFs and 20 currency-focused ETFs.
“As ETFs make up an increasingly large share of investors’ portfolios, the need for high-quality, holdings-based research continues to gain importance,” said Anthony Hohmann, ETF product manager at S&P Capital IQ. “We’re looking forward to sharing expanded analysis on fixed income, commodity and currency ETFs with our clients while we continue to build on our innovative approach to equity ETF research.”