BlackRock Set To Slice Corporate Bond ETFs By Sector
2012年2月16日 - 8:30PM
Dow Jones News
The iShares unit of global asset management giant BlackRock
(BLK) is planning to launch Thursday what is expected to be the
industry's first sector-specific ETFs tracking U.S. corporate
high-grade issues.
Income-hungry investors have been flocking to investment-grade
corporate bond exchange-traded funds at record rates this year, and
the new set of funds are designed to let them target market
segments in their search for higher yields and lower portfolio
volatility. The initial three ETFs will follow Barclays indexes
concentrating separately on financials (MONY), utilities (AMPS) and
industrials (ENGN).
More sector-specific corporate bond ETFs are in the works, an
iShares spokeswoman confirmed prior to the launch. Also on
iShares's docket to start trading Thursday is an ETF concentrating
on commercial mortgage-backed securities (CMBS) and one focused on
triple-A-rated corporates (QLTA).
"This is potentially a very significant development for
fixed-income ETF investors," said Dan Weiskopf, an adviser and
portfolio manager at Forefront Capital in New York City, which
manages about $100 million in assets. "For the first time, they're
going to be able to tactically diversify in high-grade
corporates."
Investment-grade corporate bond ETFs have attracted $1.4 billion
in net inflows so far this year, according to Lipper. Should that
pace continue, inflows for 2012 would exceed $10 billion, compared
to $4.1 billion for all of last year. "This could easily wind up as
the best year for high-grade corporates since they first became a
player in ETFs in 2002," said Jeff Tjornehoj, a senior Lipper
analyst.
Traditionally, fixed-income ETF investors have focused on "broad
segments of the market," said Todd Rosenbluth, an S&P Capital
IQ analyst. "There hasn't been a slicing of sectors in corporate
ETFs. About as granular as we've seen is a division between
high-yield and investment-grade corporates."
Along those lines, Guggenheim Funds has sponsored a series of
corporate bond ETF portfolios that are set to mature in different
years, he observed. "The idea is that investors can create their
own bond ladders through ETFs," Rosenbluth said. "These iShare
sector ETFs are going to give people even more flexibility."
In 2011, investment-grade corporate ETFs held $22 billion in
assets, up 68% from a year earlier and 587% from 2007. "The
category's been on fire," said Alan Zafran, a partner at Luminous
Capital in Menlo Park, Calif. "High-grade corporate bonds fit the
bill as providing relatively safe income at a reasonable
price."
Investors are increasingly looking for better ways to tailor
their corporate bond ETF holdings, Zafran says. "Many of our
clients own corporate bonds but would prefer to exclude exposure to
financial services," Zafran said. "But that has been almost
impossible up to this point, using ETFs."
Luminous, which manages $4.7 billion in assets, invests in the
$19 billion iShares iBoxx Investment Grade Corporate Bond Fund
(LQD), by far the most liquid and popular ETF of its kind.
Financials make up more than 36% of the fund's total assets. The
ETF has a distribution yield of around 4%. It has attracted $1.5
billion in net new inflows this year alone. In 2011, it brought in
$3.2 billion, according to iShares.
-By Murray Coleman, Dow Jones Newswires; 650-387-8024;
murray.coleman@dowjones.com