S&P Expands ETF Research to Bonds, Commodities and Currencies

ETF Trends

S&P Capital IQ is expanding its ETF analysis with reports and rankings on 240 more funds covering fixed-income, commodities and currencies.

“The ETF growth story is one that crosses asset classes, and as fixed income, commodity and currency-focused ETFs continue to attract significant investor attention, we’re pleased to be adding well over 200 such ETFs to our coverage list,” said Todd Rosenbluth, director of ETF and mutual fund research at S&P Capital IQ. Rosenbluth is one of the architects of the firm’s approach to fund research and rankings.

About 50% of the fixed income ETF reports being added to S&P Capital IQ’s research coverage have a live history of less than three years, with approximately half of those having more than $100 million in assets under management, the firm said in a press release Monday.

“S&P Capital IQ will be using a holdings-based approach for the fixed income ETFs, similar to that created by the company for equity ETFs, which will result in rankings of Overweight, Marketweight, or Underweight,” it added. “Factors that are considered in this approach include credit quality, interest-rate sensitivity, expense ratio and trading characteristics. The research reports will also include credit default swap data and commentary and insights from S&P Capital IQ’s experienced fixed income and ETF analytical teams.”

Rosenbluth noted that fixed-income investments are a component in nearly every asset allocation model.

“With now over $250 billion in assets, fixed income ETFs have become a very popular, and very useful, tool for investors and advisors looking to add yield and diversification while often paying less in fees than they otherwise would for similar mutual funds,” he said. “That being said, the universe of ETFs has exploded in recent years, making due diligence essential before selecting a fund in order to ensure that it offers  the risk-reward  characteristics that an advisor or investor may be seeking without incurring elevated costs.”

S&P is also launching reports on about 40 commodity ETFs and 20 currency-focused ETFs.

“As ETFs make up an increasingly large share of investors’ portfolios, the need for high-quality, holdings-based research continues to gain importance,” said Anthony Hohmann, ETF product manager at S&P Capital IQ. “We’re looking forward to sharing expanded analysis on fixed income, commodity and currency ETFs with our clients while we continue to build on our innovative approach to equity ETF research.”

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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