When Bond ETPs Don’t Make Distributions
Assets in bond exchange-traded products have been climbing steadily for the past several years, reflecting an increased degree of comfort among investors with the idea of achieving fixed income exposure through the exchange-traded wrapper. The bond ETF universe has expanded quite a bit in recent years; there are now exchange-traded products that cover most major international bond markets, as well as several funds that offer very precise duration exposure in multiple segments of the U.S. market [see Bond ETFs For Every Objective]. Another innovation has been the development of products that offer exposure to fixed income not by holding bonds, but by replicating indexes comprised of futures contracts with various bonds as the underlying. While these products may appear to be similar to “traditional” bond ETFs on the surface, they can be very unique in several significant ways. It may surprise investors to learn that many bond ETPs never make distributions–not [...] Click here to read the original article on ETFdb.com. Related Posts: Ten Unexpected Observations On YTD ETF Returns Ten Best ETF Performers Over The Last Five Years (Including A Few Surprises) QE2 Slaughters Long-Term Treasury ETFs Long Term Bond ETFs: One Heck Of A Rally What’s Gotten Into Treasury ETFs?
Assets in bond exchange-traded products have been climbing steadily for the past several years, reflecting an increased degree of comfort among investors with the idea of achieving fixed income exposure through the exchange-traded wrapper. The bond ETF universe has expanded quite a bit in recent years; there are now exchange-traded products that cover most major international bond markets, as well as several funds that offer very precise duration exposure in multiple segments of the U.S. market [see Bond ETFs For Every Objective]. Another innovation has been the development of products that offer exposure to fixed income not by holding bonds, but by replicating indexes comprised of futures contracts with various bonds as the underlying. While these products may appear to be similar to “traditional” bond ETFs on the surface, they can be very unique in several significant ways. It may surprise investors to learn that many bond ETPs never make distributions–not [...]

Click here to read the original article on ETFdb.com.

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