Assuming Treasury yields continue to fall, BAB and BABS will benefit, particularly because they are the most recognized names in this corner of the bond ETF market. PIMCO recently shuttered the PIMCO Build America Bond ETF (NYSEArca: BABZ).
Investors have been drawn to BAB and BABS this year. BABS, the State Street offering, has added $36.7 million in new assets since the start of the year. That is more than 42% of the ETF’s current assets under management tally. BAB, the PowerShares ETF, has gained $39.1 million in new assets, according to issuer data.
PowerShares Build America Bond Portfolio
ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of AGG and TLT.