Barclays Launches Eight Bond ETFs

Thomas Mench, chairman and chief operating officer of money management firm Mench Financial, says, "I've been waiting for [these new ETFs] for quite awhile," as they fill in several holes in the fixed-income arena left open by other ETFs.

Mench says the original batch of Treasury-based ETFs provided exposure to certain segments of the Treasury yield curve, from one to three years, from seven to 10 years and 20 years and over. The new lineup of products provides exposure to Treasury bills and fills in the gaps between three and seven years and between 10 and 20 years, he says.

"As a portfolio manager, I can pick and choose more readily what maturity structure I want," he adds.

Mench is slightly less certain about the ETFs that hold a mix of sovereign and corporate debt, saying it will be important to see what the credit quality is of the underlying securities. "I need to do more due diligence (about) the maturity, structure and credit quality," he says.

Barclays' Tucker says the firm's original six bond ETFs have attracted interest from both retail and institutional investors, and he expects the new suite of products will also.

Barclays is currently awaiting regulatory approval on two other fixed-income products, one that provides exposure to the mortgage-backed securities market and another that tracks high-yield debt. Tucker says he's hopeful these two additional funds will launch in the next few months.