iShares Offers Exposure to ‘Back End’ of Yield Curve with New Bond ETFs
Wednesday, December 9th, 2009ETF Database submits:
iShares, the world’s largest ETF provider, launched two new bond ETFs on Wednesday, the iShares 10+ Year Credit Bond Fund (CLY) and the iShares 10+ Year Government/Credit Bond Fund (GLJ). The two funds round out iShares’ fixed income ETF line by providing investors exposure to the back end of the yield curve. The two funds, both with an expense ratio of 0.20%, rebalance monthly and focus on bond issues that have at least 10 years left to maturity and a face value of at least $250 million.
CLY tracks the Bank of America/Merrill Lynch 10+ Year US Corporate & Yankees Index, a benchmark designed to measure the performance of the long-term, investment-grade U.S. corporate and Yankee bond markets. Securities in this ETF include debt issued publicly by U.S. corporations and U.S. dollar-denominated, publicly-issued debt of non-U.S. corporations, as well as foreign government debt and supranational debt. At the midpoint of the year, index consisted of more than 1,000 dollar denominated issues spanning the globe in both developed and emerging market countries.
