Simple, Cost-Effective And Targeted Access To Bonds: Fixed Income iShares

Overview: An ETF represents a basket of securities that tracks a specific market index. ETFs trade on major stock exchanges, like a stock, and therefore their price fluctuates continuously in real time to reflect changes in the prices of the underlying assets. ETFs offer investors the cost-effective opportunity to buy or sell an interest in a portfolio of bonds or stocks in a single transaction. Since the ETF trades as a stock, its price may also be affected by supply and demand. However, unlike a stock, the number of outstanding shares of the ETF may be increased or decreased on a daily basis as necessary to reflect demand. BGI recently introduced several fixed income ETF products, called iShares bond funds, which represent different maturity segments of the Treasury market as well as the U.S. investment grade corporate bond market. The continuous pricing feature of ETFs is another strong advantage. BGI’s fixed income family of iShares products covers U.S. Treasury securities across the maturity spectrum as well as domestic investment-grade credit securities. This broad range of products provides investors with choice regarding both maturity and fixed income sector. The flexibility of iShares means that they can be applied to a portfolio in a number of different ways. iShares can also be used to implement strategic or tactical investment strategies more efficiently than by utilizing individual bonds. Since their advent, iShares have allowed financial advisors and their clients to participate in BGI’s institutional management, which is built upon the concept of bringing scientific thinking and technique to the investment process.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 1,864KB | Date: Oct 2002 | Pages: 5