Bond ETF War Heats Up – First Junk Bond ETF Starts Trading
April 12, 2007
Mere days after Vanguard’s new bond ETFs (exchange traded funds) started trading, ETF giant iShares sixteenth bond-focused ETF began trading on the American Stock Exchange.
The iShares iBoxx $ High Yield Corporate Bond Fund (ticker: HYG) is the first junk bond ETF to hit the market, with a record-setting 0.50% expense ratio – more than double iShares most expensive bond ETF and near five times as expensive as Vanguard's new offerings.
There are currently only two players in the bond ETF area: iShares and Vanguard. While bond ETFs by number are a fraction of the increasingly more eclectic ETF area, as Lee Kranefuss, CEO of Barclays Global Investors’ Intermediary and Exchange Traded Funds Business notes "…financial advisors are looking to generate income for their 'Baby Boomer' clients."
Baby boomer retirement - the wave has only just begun and we're already seeing the financial services industrial complex gearing up for the greatest battle for assets in the history of investing. Can't wait. We're already sick of advertisements with classic rock soundtracks or Dennis Hopper waxing poetic about hip retirements afforded by those who choose the right broker.
Mere days after Vanguard’s new bond ETFs (exchange traded funds) started trading, ETF giant iShares sixteenth bond-focused ETF began trading on the American Stock Exchange.
The iShares iBoxx $ High Yield Corporate Bond Fund (ticker: HYG) is the first junk bond ETF to hit the market, with a record-setting 0.50% expense ratio – more than double iShares most expensive bond ETF and near five times as expensive as Vanguard's new offerings.
There are currently only two players in the bond ETF area: iShares and Vanguard. While bond ETFs by number are a fraction of the increasingly more eclectic ETF area, as Lee Kranefuss, CEO of Barclays Global Investors’ Intermediary and Exchange Traded Funds Business notes "…financial advisors are looking to generate income for their 'Baby Boomer' clients."
Baby boomer retirement - the wave has only just begun and we're already seeing the financial services industrial complex gearing up for the greatest battle for assets in the history of investing. Can't wait. We're already sick of advertisements with classic rock soundtracks or Dennis Hopper waxing poetic about hip retirements afforded by those who choose the right broker.
More info on the new iShares ETF