Best New U.S. Fixed-Income ETF – 2016
Awarded to the most important fixed-income ETF launched in 2016. Note: Importance is measured by the overall contribution to positive investor outcomes. The award may recognize ETFs that open new areas of the market, lower costs, drive risk-adjusted performance or provide innovative exposures not previously available to most investors. Only ETFs with inception dates after Dec. 31, 2015, are eligible. ETF must be classified by FactSet as a U.S. Fixed-Income ETF to qualify.
- Deutsche X-trackers USD High Yield Corporate Bond ETF (HYLB): HYLB got the nod from nominators who applauded Deutsche Bank for adding fee competition into the ETF space: HYLB is priced at just 0.25% compared with 0.50% for its top peers.
- Goldman Sachs Treasury Access 0-1 Year ETF (GBIL): To quote the nomination: “In response to money market regulatory reform here in the U.S., GSAM launched an ultra-short Treasury ETF for investors looking for slightly more duration than traditional government money market products at a lower fee.” Goldman quality at 0.14%/year? Not bad.
- IQ Enhanced Core Plus Bond U.S. ETF (AGGP): A true smart-beta bond ETF, AGGP captures the core parts of the market plus U.S. high-yield and dollar-denominated emerging market debt. What’s cool, however, is its momentum overlay, which tops-up allocations to top-performing segments of the market in a bid to enhance returns.
- NuShares Enhanced Yield U.S. Aggregate Bond ETF (NUAG): NUAG solves one of the biggest concerns facing investors: what to do with their bond portfolios. It offers a sensible, rules-based tweak to traditional bond exposure, increasing yield without going crazy.
- WisdomTree Fundamental U.S. High Yield Corporate Bond Fund (WFHY): “While investors may have recognized the shortcomings associated with cap-weighted fixed income,” writes one nominator, “there hasn’t been urgency for an alternative.” WHFY offers one, screening bonds for fundamentals and liquidity and then tilting toward bonds that will probably actually pay their debts instead of those that owe the most.
Best New International/Global Fixed-Income ETF – 2016
Awarded to the most important international or global fixed-income ETF launched in 2016. Note: Importance is measured by the overall contribution to positive investor outcomes. The award may recognize ETFs that open new areas of the market, lower costs, drive risk-adjusted performance or provide innovative exposures not previously available to most investors. Only ETFs with inception dates after Dec. 31, 2015, are eligible. ETF must be classified by FactSet as a Fixed Income ETF, but not a U.S.-focused Fixed Income ETF, to qualify.
- Cambria Sovereign High Yield Bond ETF (SOVB): The nomination for SOVB called it out as the first high-yield sovereign debt ETF. We’d note that a savvy quant model tries to suss out attractively valued bonds too.
- Deutsche X-Trackers Barclays International Corporate Bond Hedged ETF (IFIX): Investment-grade international corporate bond exposure that is currency-hedged and charges just 0.30% a year? That’s a nice addition to the ETF product lineup.
- Janus Short Duration Income Fund (VNLA): Aside from the awesome ticker, VNLA won plaudits for its simple active mandate to outperform Libor without reaching too far out the duration curve. It’s a sensible product for investors looking to park cash.
- RiverFront Dynamic Unconstrained Income ETF (RFUN): Another awesome ticker, RFUN harnesses the active wisdom of former ETF Strategist of the Year RiverFront in a go-anywhere fund that seeks to achieve a high total return.
- SPDR DoubleLine Short Duration Total Return Tactical (STOT): If you liked TOTL, the Jeff Gundlach go-anywhere ETF, you might wonder how he does managing a short-term fund. STOT lets you park one- to three-year money with DoubleLine for a fee of just 0.45%.