Barclays Launches 2 International Bond Index ETFs
January 23, 2009
SAN DIEGO (ETFguide.com) - Barclays Global Investors (BGI) has introduced the iShares S&P/Citigroup International Treasury Bond Index ETF (Nasdaq: IGOV) and the iShares S&P/Citigroup 1-3 Year International Treasury Bond Index ETF (Nasdaq: ISHG).
The new ETFs join a small but growing international bond category.
Japan (24.95%), Germany (9.28%), and Italy (8.74%) represent IGOV's three largest fixed income country allocations. Also, the average weighted maturity for bonds in IGOV is 8.22 years.
"U.S. investors are increasingly looking to diversify their portfolios by adding non-U.S. fixed income exposure. Traditionally investors have found these markets to be expensive and difficult to access," said Matthew Tucker, Head of U.S. Fixed Income Investment Strategy at BGI.
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Inside ISHG, Japan (24.95%), Germany (10.95%), and Italy (7.99%) represent three largest fixed income country allocations. Also, the average weighted maturity for bonds in ISHG is 1.87 years.
According to ETFguide.com's online database, there are just four broadly diversified international bond ETFs (including the two iShares funds mentioned above) and one emerging markets bond ETF. This makes both fixed income areas the least populated in the U.S. ETF market.
Each of the iShares funds carries annual expenses of 0.35 percent.
In related news, RevenueShares Investor Services launched the RevenueShares Navellier Overall A-100 Fund (NYSEArca: RWV).
RWV selects stocks with a quantitative formula and then weights them based upon corporate revenues. (See ETFguide's Index Strategy Map below.) Through its proprietary index, Navellier & Associates attempts to identify the 100 highest quality stocks in the U.S. equity market.
"We are dedicated to offering a full suite of ETFs to meet the demand of sophisticated investors. By combining the time-tested Navellier strategy with the upside potential of a revenue-weighting, this Fund seeks to add alpha to a balanced investment portfolio," commented Sean O'Hara, President of RevenueShares Investor Services.
RWV's net annual expense ratio is 0.60 percent.
--ETFguide's Index Strategy Map for RWV
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