04/09/2015
BlackRock publishes a guide to bond ETFs
p { margin-bottom: 0.25cm; line-height: 120%; } iShares on 13 September presented a new guide to the press, dedicated to bond ETFs (“ The Guide to Fixed Income ETFs,”) in response to growing demand on the part of institutional clients. The over 100-page guide explores the advantages that the use of bond ETFs brings, their most common applications, and their behaviour according to market conditions. Since their introduction to the European market about 12 years ago, the international bond ETF market has seen continual and highly significant growth. Fromm 17 bond ETFs with USD6bn in 2003, the market in July 2015 has more than 870 ETFs, and USD469bn in assets, with acceleration on both sides of the Atlantic. European-registered bond ETFs, which have posted inflows of USD27bn throughout 2014, have already posted net inflows of USD20bn in the first seven months of the year, bringing assets to USD115bn. Corporate bonds are the largest growth vestor, with net inflows of USD11bn in Europe since the beginning of the year. Benoît Sorel, director for institutionals at iShares France, says that assets under management at BlackRockFrance total USD21.5bn, with activities qualified as “very good.” BlackRock, most of whose funds are domiciled in Irelands or Luxembourg, is expected to soon offer French-registered products. Ahmed Talhaoui, head of the bond products strategy at BlackRock, for his part, cites the forthcoming creation in Europe of a bond smart beta ETF, which will replicate the “FIBR” fund launched in the United States in February. The iShares Fixed Income Balanced Risk ETF offers a vehicle that provides balanced 500/50 exposure to fixed income credit risks. Ishares now has 89 bond ETFs domiciled in Europe, with assets of USD71bn.
