The lifeblood of any bond offering is often its credit rating. While such a rating may not be as critical to bond funds, the ratings do give investors a clear indication about the nature and quality of a fund’s holdings as well as the skill of the manager.
In what may be a hint of things to come as ETFs battle each other for dominance in certain market sectors, State Street Global Advisors has given the old heave-ho to its SSgA Dow Jones Canada Titans 40 Index Participation Fund.
While US equity markets have lost trillions of dollars in value, US-based ETFs have continued to add assets.
Although it had been widely expected that the Securities and Exchange Commission would give Barclays Global Investors and John Nuveen Co’s Nuveen Investments Inc unit simultaneous okays to launch fixed income ETFs, the regulatory agency in June gave BGI the green light and is holding the Nuveen application in limbo.
With an almost unanimous voice, the primary marketplace for exchange-traded funds and their sponsors are excited about Morgan Stanley’s decision last month to begin coverage of ETFs.
ETFs will experience a growth spurt over the next couple of years, though nowhere near that suggested by some analysts, who predicted a doubling of assets every year for five years.
The equity research team of Morgan Stanley has taken a bold first step in the ETF arena by announcing that it will initiate coverage of exchange-traded funds.
State Street Global Investors is about to revamp its Select Sector SPDR line, in some cases shifting investment focus, rebalancing weightings and swapping stocks among funds and names in the case of one fund.
Though Barclays Global Investors’ Canadian unit has been trading its fixed income ETFs for more than a year, a US fixed income counterpart may still be a year away.