This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Barclays Launches Eight Bond ETFs

For the first time in three years, some new fixed-income exchange-traded funds are hitting the market.

Barclays Global Investors launched eight bond iShares on the New York Stock Exchange last week, bringing the total number available in the U.S. to 14. Barclays, a unit of Barclays Bank (BCS) of the U.K, is the largest ETF provider in the U.S. and is the only one with bond funds on the market now, although others are believed to be planning new products.

Exchange-traded funds are baskets of securities that trade throughout the day on an exchange. While there are plenty of ETFs that track stock and even commodity indices, bond ETFs are harder to design because fixed-income securities trade over the counter, making it more difficult to obtain prices. Barclays' six other bond ETFs have total assets of around $20 billion, compared with $420 billion for the entire ETF market.

The eight new Barclays ETFs track bond indices designed by Lehman Brothers (LEH). Three hold U.S. Treasury bonds: iShares Lehman Short Treasury Bond Fund (SHV), iShares Lehman 3-7 Year Treasury Bond Fund (IEI) and iShares Lehman 10-20 Year Treasury Bond Fund (TLH).

The remaining five hold a mixture of U.S. Treasury bonds, sovereign bonds of other nations, agency debt and investment grade corporate debt: iShares Lehman 1-3 Year Credit Bond Fund (CSJ), iShares Lehman Intermediate Credit Bond Fund (CIU), iShares Lehman Credit Bond Fund (CFT), iShares Lehman Intermediate Government/Credit Bond Fund (GVI) and iShares Lehman Government/Credit Bond Fund (GBF).

The expense ratios are 0.15% for the three Treasury funds and 0.20% for the five others.

Matthew Tucker, iShares' head of Fixed Income Investment Solutions, says the new ETFs expand the company's range of bond ETFs in terms of maturities and types of issuers. Barclays already has a full lineup of iShares equity products and is looking to provide a similar lineup of fixed-income products, he says.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CFT $111.01 0.31%
BCS $17.98 0.00%
CIU $109.01 0.00%
CSJ $105.19 0.00%
GVI $110.83 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs