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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Overseas Bond ETFs Get More Sophisticated

NEW YORK (TheStreet) -- On top of shining a light on investor appetites each month, the fund flow data compiled by the National Stock Exchange also provides evidence of the persistent growth of the ETF universe.

Aside from recapturing the $1 trillion mark in October, investors watched the net population of exchange traded funds grow by 14.

The breakneck expansion of the ETF universe is impressive, though expected. In their quests to secure market share and survive in the Darwinian environment, both new and veteran ETF sponsors have long sought to provide individuals with unique and attractive ways to gain access to the global marketplace.

Today, using ETFs, investors can dice sectors, global markets, and other asset classes into increasingly thinner slices, allowing them tailor their portfolios to meet their personal investment demands.

Not all corners of the ETF universe have evolved at the same pace however. On the contrary, in the case of bond ETFs, the growth has been relatively gradual.

Whereas investors can turn to a variety of products when attempting to take aim at the domestic bond market, it has traditionally been difficult to gain exposure to international debt. In the past, I have directed investor attention to funds such as the iShares JPMorgan USD Emerging Market Bond Fund (EMB) and the SPDR S&P International Government Inflation Protected Bond ETF (WIP). While effective in targeting the debt of popular foreign nations, these funds may leave something to be desired.

For example, both funds take aim at foreign debt using broad brush strokes. While investors can use equity-backed products to target individual nations or single sectors within a specific country or region, those looking to expand the reach of their fixed income portfolios beyond the U.S. borders have been forced to take a wide-net approach.

The tide, though, appears to be shifting as seen by the recent batch of new fund launches.

In September and October, fund companies including Guggenheim, Van Eck, Blackrock, PowerShares, and most recently, PIMCO, have unveiled products that are designed to hone in on the debt of individual nations. In addition to targeting single countries, the bonds underlying new products such as the PowerShares Chinese Yuan Dim Sum Bond Portfolio (DSUM) and the PIMCO Australia Bond Index Fund (AUD) are denominated in their local currencies.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,083.80 -2.83 -0.02%
S&P 500 1,987.98 +0.97 0.05%
NASDAQ 4,472.1080 -1.5890 -0.04%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs