Here’s a quick primer on how the three ETFs might fit into your bond portfolio:
TIP: seeks to track the investment results of Bloomberg Barclays U.S. Treasury Inflation Protected Securities (TIPS) Index (Series-L) which composed of inflation-protected U.S. Treasury bonds. While the Federal Reserve appears unflinching when it comes to its stance to keep interest rates low, what will it do if inflation starts to rise? With the increased flows into TIPS to start 2021, investors and traders alike might be sensing that a healing economy will translate into higher inflation in the new year.
IGSB: With its low 0.06% expense ratio, IGSB seeks to track the investment results of the ICE BofA 1-5 Year US Corporate Index. The fund generally invests at least 90% of its assets in securities of the underlying index. The underlying index measures the performance of investment-grade corporate bonds of both U.S. and non-U.S. issuers that are U.S. dollar-denominated and publicly issued in the U.S.
December 28, 2020
The current market environment is conducive to equities, but that doesn’t mean bond exposure should be expunged from your portfolio.
First, why still get bond exposure? As a Financial Times article put it:
“Returns over the horizon may be harder to achieve, but bonds will still play a very important role in portfolios. Indeed, the traditional benefits of bonds diversification and a moderation of portfolio volatility could be especially beneficial in the years ahead. The global economy is likely to see a bumpy recovery and broader shifts that could create much greater volatility than the market has experienced over the past decade.”
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It s the holiday shopping season and in the spirit of the season, everyone loves a good deal. Well, everyone loves a good deal all year long and that s something exchange-traded funds issuers often oblige.
BlackRock s iShares unit, the world s largest ETF sponsor, is adding some cheer to the season, announcing fee cuts on four of its well-known products.
For the most part, the expense ratio reductions are modest, but for long-term investors, those small cuts can add up to big savings over time.
Here are the four iShares ETFs with newly lower fees.
iShares Core MSCI Emerging Markets ETF (IEMG)